The annual cancellation of the borrower insurance is a possibility open to consumers for over a year now, thanks to the amendment Vourguin. However, many borrowers still seem to ignore this right of termination to change their loan insurance. This can allow substantial savings, even with equivalent guarantees with the current contract. The thirties are particularly concerned by this potential economy.
Thirties, a clientele that insurers appreciate
Borrowers in their thirties are highly valued profiles not only by banks but also by insurance companies. Indeed, at this average age, the risk of death is low (0.06% in women and 0.14% in men).
Note that the average age of first-time buyers is 31 years. Yet, they often do not take the time to go looking for a real estate loan insurance delegation when they prepare their real estate purchase project. In fact, generally in a hurry to “win” their financing, they subscribe directly to the group insurance contract presented by the lending bank, which is a contract previously subscribed by the latter to a partner insurer to cover its borrowing clients with a standardized formula, unlike the delegation of insurance that allows the subscription of custom contracts designed according to the profile and characteristics of the borrower.
With a group insurance contract, the 30-year-olds, most often healthy young people, have to pay as much as older people, who are much more likely to suffer from health problems and risk of death.
Assignment of insurance to reduce up to 75% the amount of the contribution
Unlike the group insurance contract proposed by the lending institution, in the case of individual loan insurance, the guarantees are set up according to the needs and characteristics of the borrower’s profile (age, state of health, professional activity, sports and leisure activities.). The rate is thus fixed according to these determining criteria, and it is lower for any person presenting no particular risks (health problem, profession at risk, extreme sport practice.).
According to some real estate mortgage brokerage data, for a housing loan of 150,000 euros with a repayment term of 20 years, a couple of thirties pay an average of 50 euros per month of insurance contributions with a of 0, 27%.
Two years after signing the borrower insurance contract, they have the opportunity to use the right offered by the bank, which is to change the offer annually at the time of the anniversary date of the credit signature. This is how they can access a rate of 0.07%, corresponding to a monthly insurance of 38 euros. Over the remaining term of the refund, the gain would then exceed 8,000 €.
In order to optimize the economy while being covered by a contract meeting the requirements of the bank, it is recommended to take the time to rigorously compare the different offers of the market.