Real estate, one of the most essential elements in everyone’s life. It is currently possible to acquire a building as quickly as possible by using a mortgage. Nowadays, the bank has made borrower insurance compulsory for a mortgage. Given the accidents that can occur there, it is normal for your bank to avoid misfortunes. If you want to take out a mortgage, it is important to be well prepared to avoid unpleasant surprises. Yes, if you’re not careful, even your bank may well charge you with fees that you have no knowledge of.
What is the use of mortgage loan insurance?
First of all, it is important to clarify that borrower insurance is a kind of cover, that is to say, it helps you repay your monthly payments, for example, if you have a few outstanding loans. Indeed, the borrower insurance provides great help for your daily lives since you will no longer be subject to repaying your various loans, it is up to this insurer to do it, which will make the monthly payment a little more flexible. If because of the deterioration of your health, you are not able to work, your insurer will begin to reimburse your credits after three months.
If you are now declared disabled, it is up to your insurance to pay part of your monthly payments, but this will depend on the severity of your disability. In the event of death, and you have not yet repaid all of your mortgage, your insurance will take over and ensure that you pay all of your credit. During this time, your heirs will only be able to benefit from the building when the entire loan has been repaid, otherwise it will be subject to a mortgage
Which borrower insurance to choose?
Before it was at the bank where you took out your mortgage to choose your borrower insurance, but since the 1stSeptember 2010, borrowers are free to choose their own borrower insurance, which has both advantages and disadvantages. Indeed, you will now be able to manage your monthly payment, and even see a flexible monthly payment, provided you choose the right insurance, that’s the downside. Even if your bank requires you to take out insurance, as soon as you show the justification that you have in fact taken out an insurer, the procedure to obtain the loan will be less complicated. In order to choose the right borrower insurance, the first tip is to look for less expensive insurance, but which has the capacity to cover well.
It is important that you know that your contract with the borrower insurance must have already been established when you conclude the mortgage contract with your bank or lender. You must therefore already be insured when the funds are transferred to your checking account. In the absence of a contract, your bank may evoke absolute nullity since taking out borrower insurance is one of the essential bases of the loan contract.
Know that if the insurer you have chosen does not meet your expectations, you can always replace it. The bank requires you to have borrower insurance, but it didn’t say you can’t replace the one you contracted with. This replacement requires some rather complicated procedures, but what is important is that you will always have the option of choosing better borrower insurance later on. But, in order to avoid being subjected to the replacement procedure, it is always better to choose your borrower insurance from the start.