Medical formalities to join a loan insurance
To join a loan insurance, it is necessary to submit to certain medical formalities. Depending on the age of the borrower, the type of loan agreement and the amount of capital borrowed, these medical formalities may be more or less important. In case of aggravated health risks, the agreement can help borrowers suffering or having been seriously ill.
State of health of the borrower: a key element for risk assessment
The state of health of the borrower is an important point when applying for loan insurance. In fact, the insurer inquires about the health status of the borrower in order to assess the risks he must take charge of. Depending on the level of risk represented by the insurance applicant, the insurer may either grant standard insurance or grant a guarantee by requesting the payment of a surcharge (premium increase) in return for the introduction of adapted guarantees, either to grant insurance by excluding certain risks or simply to refuse the granting of insurance.
The steps of the borrower to choose his insurance loan
Borrower’s path through the credit insurance membership scheme when subscribing to a loan cover with cheap loan insurance. Consult the explanatory diagram of the customer solution and the steps for obtaining the insurance delegation.
- if the borrower sends back a blank health questionnaire for a loan of less than 230.000 € uros,
- if the borrower answers yes to the health questionnaire,
- if the amount of the loan is greater than 230.000 € uros.
The borrower insurance enrollment scheme
Consult the diagram of your insurance loan membership
Levels of medical formalities for applying for credit insurance membership
There are mainly 4 levels of medical formalities:
The declaration of good health: it is a simple statement to be issued to the insurer where one asserts of his good health (no illness, no medical treatment, no surgery).
The medical questionnaire: this form is to be completed by the applicant for the guarantee. It is usually submitted by the insurer when applying for loan insurance membership so that risks can be assessed.
The medical report: this is a document that must be completed by the treating physician of the loan insurance candidate. This one is more precise because it involves more questions than the medical questionnaire.
Medical examination: at the request of the insurer, the applicant for insurance must submit to a medical examination in order to check his state of health.
The medical questionnaire in case of misrepresentation
Be honest and accurate when completing the health questionnaire because in case of false declaration, if the insurer is able to prove your bad faith, he can invoke the nullity of your loan insurance contract or review its conditions according to real risks of which he became aware.
Important note for borrowers
The bank, or credit institution can not refuse or even change the rates of the credit proposal if you opt for an insurance delegation.
Real estate credit insurance cost
The ways to calculate the cost of your mortgage insurance:
- Smooth insurance cost: the price remains the same from the beginning to the end of the mortgage.
- Variable insurance cost: The amount follows the amortization table of the capital remaining to be repaid.
Quotities insurance loan
Percentage of mortgage insurance coverage in the event of a claim. The distribution of coverage between borrowers if there is a co-borrower.
- 1 borrower Formula Death/Incapacity Work: 100%
- 2 borrowers Guarantee Death/Incapacity Work: 100%