How much to choose for your loan insurance? The proportion corresponds to the portion of capital borrowed covered by the mortgage insurance. Here are the terms and some tips for choosing the right amount at the time of subscription
What is the share of borrower insurance?
The percentage of the home loan insurance corresponds to the portion of capital borrowed that is insured by the contract.
Thus, it is this part that will be reimbursed by the insurer if it is impossible for the insured to do so, according to very specific cases mentioned in the contract.
Be aware that this share still represents a total of at least 100% of the capital borrowed, but it can:
- to be more important
- be divided among several borrowers
How to choose the right amount?
If you borrow alone , your share will be equivalent to 100% of the amount of the loan.
On the other hand, if you are two , you can divide it in proportion to the income of the two co-borrowers (50-50, 60-40, 70-30, etc.).
Which formula is recommended if you borrow at 2?
In this case, however, it is recommended to opt for a 100% quota for each of the 2 co-borrowers .
If the mortgage insurance will cost you more , the capital will be fully repaid in case of death of one of the two co – borrowers . In addition, this integral portion will apply to all guarantees.
What are the steps to follow to choose the best possible quota?
You will need to ask yourself a series of questions , such as:
- the assessment of the couple’s income (current and anticipated …)
- the anticipation of the evolution of the family (expected children …)
- the risk assessment (what would happen in case of death of one of the 2 co – borrowers, which pension would be collected in case of disability …)