When a real estate loan is made, borrower insurance accounts for a significant part of the total credit cost. Choosing the right contract, understanding its guarantees and controlling its price are essential steps for any borrower. Cardif offers a real estate loan insurance offer that deserves to be examined in detail.
In brief
- Insurance Cardif Libertés Borrower covers fundamental risks such as death, disability and disability, with options for specific pathologies and job loss.
- The subscription may require a medical questionnaire depending on the characteristics of the loan.
- Under the Lemoine Act, borrowers can terminate their current insurance at any time to move to Cardif, which facilitates transfer procedures.
- The cost of insurance depends on personal factors such as age, health status, smoking status and occupation, with TAEA being the key indicator for comparing offers.
- Cardif proposes a 10% reduction on the contribution for loans contracted to two.
- Online simulation tools make it possible to obtain a personalized quote, often competitive against traditional banking insurance contracts.
Characteristics of Borrower Insurance Cardif
The guarantees offered by Cardif to cover your mortgage
Banker Insurance Cardif is structured around a base of fundamental guarantees to cover the borrower against the hazards of life. The Cardif Libertés Borrower contract includes guarantees deaths, PTIA, IPT, IPP and ITT, to which is added an option Serenity + covering back and psychiatric diseases without condition of hospitalization. The guarantees provided for in the contract determine the situations in which insurance may intervene.
The insurance is a key parameter to be carefully defined: choosing a 100% coverage for each co-borrower offers maximum protection but generates a higher cost than a 50/50 allocation. Cardif also proposes a 10% reduction on the contribution when the loan is made to two.
Conditions of accession and the functioning of the Cardif contract
To subscribe to Cardif Borrower Insurance, the borrower must provide identification, details of the real estate loan and, if applicable, an identification. medical questionnaire. The latter is required only if the guaranteed amount exceeds 200 000 € and that repayment of the loan takes place after the insured person's 60th birthday. The medical procedure depends on the characteristics of the loan and the borrower's situation.
The Lemoine law, which entered into force on 1 June 2022, allows for a change of loan insurance at any time and without penalty, provided that the new contract provides at least equivalent guarantees. Cardif supports administrative termination procedures for new subscribers who wish to leave their bank insurance, which greatly facilitates the transition. For a change in insurance, the depreciation table, the standardized information sheet and the current insurance contract should be provided.
How to estimate the cost of his Cardif borrower insurance?
Factors influencing the Cardif loan insurance rate
The cost of insurance borrower averages between 25 and 35 % of the total cost of the loan or between 30 and 40 % depending on the configuration of the file. Several factors determine the amount of contributions: age, health status, smoking status, duration and amount of loan, and occupation.
Concerning the insurance rateCardif indicates ranges that vary significantly according to the profile. For a healthy borrower under 35 years of age, rates range from 0.10% to 0.50%. Between 45 and 55 years of age, they range from 0.30% to 0.80%, and can reach up to 1.50% beyond 55. Smoking can result in an increase in the contribution, and some occupations at risk such as firefighters or military may result in over-prime. The TAEA, or Annual Insurance Workforce Rate , remains the benchmark indicator for objectively comparing contracts between them.
As a guide, a 30-year-old non-smoker borrower pays about 8 to 17 € a total cost of 2,000 to 4,000 per month € 20 years. A 50-year-old non-smoker borrower will see his monthly contribution vary between 25 and 35 €for a total of 6,000 to 8,400 €. For a 36-year-old non-smoking couple borrowing 250,000 € over 20 years, Cardif has a total cost of 8,299 €, with a TAEA of 0.16% and a monthly average cost of 34.58 €against 19,455 € on average for insurance offered by banks.
Simulate online the price of his insurance borrower Cardif
In order to obtain a precise estimate adapted to his situation, it is quite possible to carry out a real estate loan insurance simulation Cardif Directly online. This tool allows you to obtain a personalized estimate by providing some essential information: the borrower's age, the amount and duration of the loan, the nature of the project (new loan, credit buyback or insurance change) and the health profile. The Standardized information sheet Each simulation must be submitted in order to ensure a transparent comparison between the different market offers. The delegation of insurance, made more accessible by Lemoine law, allows each borrower to freely choose their contract and optimize the overall cost of their real estate credit.