To terminate the group contract to which we have initially subscribed and to call on the insurance delegation to ensure our mortgage, we must respect a certain timing … and the equivalence of guarantees. The latter is based on equivalence criteria, indicated black and white in the group contract. We explain to you.
Changing borrower insurance is easy
No, there is no longer any question of whether it is possible to choose your loan insurance: over successive laws, the insurance delegation has been liberalized. We can decline the group contract of his bank to favor another establishment as of the signing of the loan contract since the Lagarde law of 2010, but also at any time during the first twelve months thanks to the Hamon law of 2014, and finally at each anniversary date beyond the first year under the effect of the Bourquin amendment of 2018.
Criteria for comparing
Yes, but the delegation of insurance remains strongly in the minority compared to the group contract, and this is partly due to the difficulty for borrowers to grasp the conditions for changing it. Not just in terms of timing, because another point may seem vague at first: the equivalence criteria.
In other words, the guarantees of the new loan insurance must be at least equivalent to the previous one for the request to be admissible. For the comparison to be possible between two contracts, there are criteria for each of the borrower insurance guarantees.
Common or specific conditions depending on the guarantees
Does the new loan insurance cover such different claims throughout the loan period? Is the quota insured per head equal or higher? And the franchise period? There are a total of 11 equivalence criteria.
Regarding the total and irreversible loss of autonomy guarantee, the coverage or not of the sports that the borrower practices on an amateur basis on the subscription date is included in the list of these equivalence criteria. And the latter is extended for incapacity and invalidity guarantees. They are both affected by the scope of coverage (back and psychiatric conditions).
For the first, we can also take into account the coverage of the inactive or the maintenance of the coverage in case of therapeutic part-time with a minimum coverage of 50% over a period of at least 90 days. For the second, we will look at the disability rate from which coverage is effective as well as the level of coverage in relation to the loss of income suffered at the time of the incident.