Choose between group credit insurance and individual loan insurance
Future borrowers often wonder how to choose between group credit insurance and individual loan insurance … broker Dora Spenlow.fr reviews the two types of contract.
The implementation, in September 2010, of the Lagarde law requires lending institutions and insurers to provide borrowers with an information sheet on loan insurance when they want or “must” secure a loan.
Solutions to secure a loan
There are two solutions for the borrower: take out the group insurance offered by the bank or purchase individual insurance from another insurer.
Comparative group and individual loan insurance with the loan insurance broker cheap
Group insurance is group insurance that has been negotiated by the bank with a partner insurer. It generally presents a single tariff and covers borrowers identically (average risk).
Bank Group Loan Insurance
Since the existence of the Lagarde law, you are no longer obliged to contract the group insurance of the bank. Indeed, you can opt for the insurance delegation: you can buy your insurance with the insurer of your choice. This device is advantageous for the simple reason that it can allow you to make significant savings on the cost of insurance and therefore credit.
Individual insurance is based on the individual profile of the borrower. It offers the opportunity for the borrower to be better covered and benefit from a rate that may be more advantageous than the bank’s group contract.
External individual loan insurance
With the use of an online loan insurance comparator or by using a broker, you can compare the best insurance offers to choose the solution that is most advantageous to you.
The legal obligations of the bank
The bank can not refuse individual insurance if the guarantee level of the contract is equivalent to or higher than the group insurance contract it offers. Any refusal on his part must be motivated in writing. It is also not entitled to modify its loan conditions on the pretext that the borrower opts for a delegation of credit insurance external to the bank.
It is more than useful for all the profiles of borrowers to compare the group banking insurance offer with the many individual offers outside banks (insurance companies: April, generally, alptis, allianz, …) in order to get the best possible guarantee at the best price.