When applying for a home loan, the bank requires the borrower to take out loan insurance to guarantee repayment of monthly payments in the event of inability to pay.
Get coverage in case of job loss
When taking out their loan insurance, many borrowers also want to benefit from the job loss guarantee. However, the latter with a high tariff and restrictive conditions, today few borrowers subscribe unemployment insurance loss of employment in a mortgage.
Difficult membership conditions for the borrower
In order to qualify for the loss of employment guarantee, the borrower must work under an indefinite duration contract (CDI), according to the contracts either since at least at the time of the signature of the unemployment insurance contract or to be able to claim compensation. In case of loss of employment, it must imperatively be able to benefit from the benefits of Pole Employment (formerly Anpe). Thus, non-salaried workers such as tradesmen, craftsmen and the liberal professions are not eligible for the loss of employment insurance.
Waiting periods and deductible
The waiting period is a period during which the guarantee is not effective. In the context of the loss of employment guarantee, this is usually set at one year in order to prevent the borrower from taking advantage of the situation in the event that he has been informed in advance of his next dismissal. waiting periods of 6 months.
The period of grace is the period that it is necessary to wait from the dismissal for the insurer to take over the compensation. This varies on average from 90 to 120 days.
The terms of compensation
Depending on the contract, the duration of the indemnification may be extended from one to two years, allowing partial coverage ranging from 40% to 100% depending on the premium. Unemployment insurance contracts allowing the insurer to take full responsibility for monthly payments are rare for mortgages of more than 1000 € in monthly installments.
When you want to protect yourself with the loss of job guarantee, it is therefore advisable to be patient in order to find the cheapest contract that will meet the best conditions.