Changing loan insurance has never been easier than it was in September 2022. There are, however, certain formalities to be observed.
Significant savings: that's what renegotiating your mortgage insurance can achieve. According to UFC-Que Choisir magazine, borrowers who take this step save an average of €15,000 over the term of their loan by switching from group insurance to delegated insurance (an individual policy taken out with an insurer other than the bank that granted the loan). Since 2022, the entry into force of the Lemoine Law has made it possible to change loan insurance at any time. However, there are a few steps to follow if you want to change your insurance successfully.
Compare offers
There are many operators on the loan insurance market. Competition is fierce, and this is a real boon for consumers. Go back to your original contract to find out what cover it offers you. You can then approach other insurers or go through a broker to find the best solution.
Once you have compared the various offers on the market, you can also submit them to your bank so that it can offer you the same terms and conditions.
A policy offering the same cover
If the aim is to take out a less expensive policy, you still need to find a plan that offers equivalent cover to your old policy. Banks can impose up to 11 equivalence criteria that borrowers must meet if they change their insurance.
You can also sign a new contract offering more cover than the initial contract. Some offers also have the advantage of being more personalised, better suited to your needs: job loss cover, death cover and total and irreversible loss of independence (PTIA) cover, etc.
Sending the new contract
If the new loan insurance contract meets the requirements of the bank with which you took out your loan, then you need to send them the general terms and conditions of the new contract for validation. The bank then has 10 days to respond.
Always be insured
Before cancelling your old contract, wait until you have received your bank's formal acceptance of the new one. You must always be insured, without interruption. Otherwise, the lender could demand immediate repayment of the entire outstanding capital and the remaining interest...
Cancelling the old contract
Once all the above formalities have been complied with, it's time to cancel the old contract. To do this, you need to send a cancellation letter by recorded delivery to the old insurer within 15 working days.
Translated with www.DeepL.com/Translator (free version)
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