In many situations, insurance reimburses the mortgage in place of the owners, but there are few who ask for it, and this ignorance benefits banks …
Many owners do not know that their mortgage can, in some cases, be taken care of. Result: some continue to pay, even when they can no longer afford it. Despite everything, hundreds of people continue to draw on their savings, to sell a car, to go into debt a little more, while their insurance could have absorbed the shock.
Indeed, the day you sign for a mortgage, the bank requests borrower insurance. We are talking about death, disability, sometimes vaguely of temporary incapacity for work, but without going into details. However, this contract can become your best ally if you find yourself bed in bed or unable to work for several months. What is called a pathological judgment or a prolonged work stoppage, for example after a burn-out, an operation, or a complicated pregnancy. In these cases, insurance can take care of the monthly payments of your credit, partially or completely.
In France, it is often the insurance companies themselves that manage these guarantees, not the bank. The public service website mentions it very clearly: “Borrower insurance covers the payment of all or part of the reimbursement deadlines for your mortgage that remain due when you are in at least one of the following situations: death and total and irreversible loss of autonomy or permanent disability (total or partial) and temporary incapacity for work (total or partial) or loss of employment (you are free to take this guarantee or not).”
It is therefore enough to request it. Because no, insurers will not run you afterwards to tell you that they can pay for you. It’s up to you to dig. It’s up to you to reread your contract. Or send it to an advisor who will spot useful clauses. In short, in a period of crisis when ends are tense, so this is information to remember, because we rarely think that all these cases are covered.
In the event of a blow, your borrower insurance can save you. Too often ignored, it nevertheless covers situations such as incapacity for work or loss of job. Just solicit it to lighten your monthly payments and avoid drawing on your savings. A simple gesture that can make all the difference.
