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Borrower insurance without excess and without waiting periods

When signing up for mortgage loan insurance, borrowers tend to focus more on prices and guarantees. However, there are other essential elements affecting the quality of coverage such as the waiting period and deductible. Is it possible to negotiate these latency periods or even eliminate them? Answers.

The deductible period in borrower insurance

The purpose of mortgage loan insurance is to replace a borrower on the repayment of his monthly payments following an accident of life:disability, death, incapacity for work, unemployment, etc. This coverage imposes many restrictive conditions given the importance of the compensation paid by the insurer. Among the key points that deserve all attention in the contract is the franchise period. This is the period during which no support is provided by the company after a claim. With the deductible period, the guarantee is acquired, but the insured must wait a certain number of days or even months before being entitled to compensation.

The length of this latency period depends on each insurer and the terms of the contract. It generally extends over 1 to 3 months in terms of death cover and total permanent disability (IPT) and permanent partial disability (IPP) cover. It is especially at the level of the guarantee total incapacity for work (ITT) that the waiting period is long since it goes from 3 to 6 months. And with the job loss guarantee, it can even go from 3 to 9 months. As a general rule, therefore, an insured must wait from 15 days to 180 days to be able to receive compensation. This deductible period is activated as soon as the event has been declared to the insurer.

What is the difference with the waiting period?

Borrower insurance also includes a waiting period which is different from the deductible period since the latency period starts at the end of the subscription to the contract. Throughout the duration, the insured is not covered by any guarantee, but continues to be liable for contributions. This system was put in place by insurers to prevent fraud and abuse. In general, the waiting period varies greatly depending on the company and can range from 1 month to 1 year. It must be clearly mentioned in the general conditions of sale. To better understand, let's take a simple example. Let's assume that after taking out the insurance, the insured is subject to a deductible period of 6 months. This means that during this entire period, no compensation will be paid by the insurer.

Is it possible to negotiate the grace period and the waiting period?

Given the penalizing nature of the deductible and waiting period, many borrowers seek contracts exempt from these terms. Luckily, the grace period can be negotiated. The self-employed, self-employed and liberal professions who need quick compensation will find what they are looking for. By requesting a reduction or even an abolition of this duration, they can better cope with a drop in income. On the employee side, as they have a collective pension solution within their company, absolutely eliminating this grace period is not always vital.

Especially since by negotiating this advantage, the annual insurance premium may increase. Regarding the waiting period, it is unfortunately very difficult to request its removal. The only option is to find a contract that offers the shortest possible elimination period. For this, nothing better than to make a comparison of online offers. Free and without commitment, this approach allows you to find contracts adapted to your needs and your budget.