Borrower Insurance

PROFESSIONAL BORROWER

Optimal coverage of professionals with delegated loan insurance

When subscribing to a business credit, even if the lender does not require it, it is essential to also take out professional loan insurance. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

What is professional loan insurance?

Any professional (craftsan, trader, entrepreneur, self-employed worker or liberal professional) can apply for financing within the framework of his activity to create or take over a business, buy equipment or premises, for a new investment, etc. The risk with the professional loan is indeed all the more important that the subscriber’s financial health is based on that of his activity. In addition, the borrower insurance allows a tax reduction; integrated into the interest rate of the credit, it is deductible from the taxes of your company. For the leader of an SME, the reduction of the tax base allows a profit up to 25% of the amount of interest. This protection is customizable according to the risks to be covered (in particular death, total permanent disability due to an accident or illness, incapacity for work) and the profession, which can modify the disability rates supported. .

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How to change professional loan insurance?

If you have opted for the bank’s group contract at loan signing, this decision is not irreversible. You still have the possibility to change to reduce your monthly payments without reducing your protection. If you have exceeded the limit, you will be able to break the contract two months before the next anniversary date of your credit. In any case, anticipate your change request and be ready with the alternative contract to avoid a period without coverage. Be careful, for the bank to accept your delegated insurance, you must submit a proposal with the same guarantees. This is the only ground for rejection provided for by the Lagarde Act that established the principle of delegation.

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How to obtain a PRO borrower insurance simulation?

The broker is a valuable partner to compare offers available on the market, set up coverage at a competitive rate, and build the record. For a first idea, do not hesitate to use professional online loan insurance simulators. Free and fast, it finds you the offers answering at the same time your needs and your profile according to several criteria: your age, the amount borrowed, your state of health and your antecedents medical, your trade, your extra-professional activities (in particular the practiced sports), etc. The method of pricing also has an impact: application of the rate on the borrowed capital or on the capital remaining due, or surcharge in case of aggravated health risk.

INDIVIDUAL BORROWER

The borrower insurance: why and when to subscribe?

To make your project a reality, you need to get a loan and often a borrower insurance. An important element of credit, borrower insurance complements the bank’s solvency analysis.

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Insurance must be sought as soon as possible

To achieve your project with confidence, the search for a borrower insurance can be done before the search for credit, especially if you think that the insurance can be difficult to obtain. Anticipate the search for insurance, as soon as you know the amount to borrow, the duration and rate of the loan that can be offered to you and without waiting for the acceptance of the loan. This allows you to: Play the competition by comparing all contracts (guarantees, benefits, tariffs), Save time if it turns out that you need to answer detailed health questionnaires and additional medical exams, Know in advance if you are insurable and under what conditions: level of coverage, exclusions, standard rate or premium, Consider alternative solutions (bond, mortgage, etc.) if insurance is refused.

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Insurance participates in the loan guarantee

The borrower insurance protects you and your family. The insurance can cover the repayment of your loan according to the contract you have taken out. This allows you to avoid the implementation of collateral, such as bond and mortgage, which could lead to the sale of your property. The borrower insurance can cover different risks: The death benefit covers not only death, but also cases of extremely serious disability, called “total and irreversible loss of autonomy” (PTIA). The guarantee in the event of disability / incapacity for work covers the repayment of the deadlines if, as a result of an illness or an accident, you find yourself unable to exercise your professional activity or any other activity in such a way not definitive or partial. The purpose of the guarantee in case of loss of employment is to cover all or part of the reimbursements in case of unemployment, under certain conditions. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

How to determine the insurance you need?

For each insurance application to a professional (banker, insurer, broker) for a mortgage, a standardized information sheet (FSI) is systematically given to the borrower or co-borrower. To make it easier for any insurer, the ISP: Provides at a minimum, the main features of insurance to guarantee the repayment of a mortgage according to the purpose of financing (first-time, rental …), Presents the definition and description of the types of collateral that can be subscribed, the minimum required characteristics, the guarantees offered, the share of the borrowed capital to be covered as well as a personalized estimate of the cost of the insurance envisaged (cost in euros and per periods depending on the frequency of payment, the total cost of the insurance over the envisaged period, the effective annual rate of insurance for the entire loan.)

UNPAID RENTS

Unpaid Rent Insurance

Unpaid Rent Insurance, also known as Unpaid Rent Guarantee or GLI, secures the income of the landlord and guarantees it against rental risks: rents and unpaid expenses, property damage, litigation costs, and sometimes the premature departure of the tenant. This is an insurance issued by private companies, contrary to the guarantee Visale. Even if the lessors can ask for a joint and several guarantee, this guarantee is not always reliable in the case of a natural person, especially in the event of insolvency or bad faith (refusal to pay). The fact of taking insurance unpaid rents more securely covers the lessor in the event of unpaid rent or degradations greater than the amount of the deposit. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Can we combine Unpaid Rent Insurance with a joint security?

Article 22-1 of the Law of 6 July 1989 states that it is not possible to ask for a deposit if the lessor has already taken out insurance against unpaid rent. The same goes for Visale. Only exception: if the tenant is a student or apprentice. In this case, the lessor can accumulate both.

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What are the guarantees of Unpaid Rent Insurance?

The guarantees generally offered in these contracts are: insurance coverage of unpaid rent: in the event of default by the tenant, the insurance covers rents, charges and taxes, occupancy allowances, regardless of the reason for the default (unpaid) , death, …), after the grace period if provided. The lessor owns the sums not collected during the few months of the franchise period. This guarantee (and therefore compensation) is limited in time or amount. deteriorations and degradations that could not be financed by the deposit. This damage must be attributable to the tenant and the guarantee must be underwritten (this additional coverage is an option for some insurers) This warranty is limited in amount and often subject to franchise. Litigation costs caused by the unpaid situation: recovery costs, legal fees, bailiff fees, etc. The premature departure of the tenant: in case of death of the tenant or premature departure of the tenant (non respect of the period of notice, departure “with the bell of wood”), the insurance compensates the owner until the recovery of the premises. This warranty may be included as basic or optional depending on the contract. Some contracts also offer an optional “rental vacancy” guarantee, which allows compensation for the period between two tenants where the landlord does not receive rent. Guarantees ceilings and deductibles are generally present. Insurers offer almost all options, with additional costs. Prices vary by company. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

How Much Does an Unpaid Rent Insurance Cost?

The amount of the contribution is expressed as a percentage of the annual rent of the housing concerned, plus the fixed fees of the insurers. The rates for this insurance range between 2 and 5% of the annual rent, depending on the insurers and options possibly subscribed. On average, a little less than half a month’s rent. The amount of contributions is deductible from property income, which reduces its cost and makes this insurance attractive as a lessor.