Borrower insurance

All articles on this topic

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• Is borrower insurance mandatory? No, but the lender may require it: who decides what No law requires you to insure a mortgage, but the lender may require it: what the lender decides, what you choose, and what to do in the event of a refusal.
• Mortgage insurance for a rental investment: which coverages to reduce and which to keep For rental properties: the cover the lender really requires, what can be reduced, the cumulative-limit trap, and the case of a property company (SCI).
• Mortgage insurance refused or surcharged: the AERAS agreement, appeals and solutions Refusal, exclusion or surcharge: the three levels of AERAS review, the capping mechanism, appeals, and the realistic alternatives when nothing works out.
• Death of a borrower: what the insurance covers and what remains the responsibility of the co-borrower Who the insurance pays, what it does not cover, what remains to be paid by the surviving party, and the questions to ask the solicitor: the mechanics, in order.
• Work stoppage and loan insurance: who to notify, within what timeframe, and what blocks the payment Declaring a work stoppage to loan insurance, in the real order: the eight steps, the three documents always missing, and the only fatal deadline.
• “Your own profession” or “any profession”: the definition of incapacity that decides everything Two wordings, two worlds: depending on your contract’s definition, the same period of work incapacity either triggers the cover or does not.
• Delegation of borrower's insurance: when to request it for a new loan? For a new loan, the delegation of insurance is prepared before the offer: documents to request, order of procedures, what the bank cannot do.
• Equivalence of guarantees: the criteria the lender selects, and how to challenge them Who selects the equivalence criteria, where to find your lender’s list, how to read a refusal letter, and the deadlines running against the lender.
• Mortgage insurance exclusions: back, mental health, sports, professions – what voids a guarantee General, specific, and buy-back exclusions: what is never covered, what can be reinstated for a surcharge, and the combination that the law prohibits.
• False health declaration: nullity of the contract or simple reduction of the indemnity? Nullity or indemnity reduced pro rata: everything hinges on intent, and it is for the insurer to prove it. What is enforceable against you, and how to react.
• Excess, waiting period, waiting time: when mortgage insurance actually starts paying out Waiting period, excess, waiting time: three often confused timeframes. What each one delays, and the line in the policy document that dates the first payment.
• Borrower insurance guarantees: what death, total and irreversible loss of autonomy, total and permanent incapacity, permanent total disability and permanent partial disability actually cover The five guarantees of loan insurance, in the order they apply: what triggers them, who decides, and the line in the policy document that settles it.
• Flat-rate or indemnity mortgage insurance: the clause that determines what you will receive Two contracts covering “ITT” may pay out your full instalment or nothing at all. Where to find the clause, and how to determine what it will pay you.
• Reading a borrower insurance policy document: the six lines that determine your compensation, and the seventh Incapacity, compensation, deductible, exclusions, age limits, TAEA: the reading order that reveals what you will receive, and the forgotten seventh line.
• Health questionnaire: when it truly disappears, and when it returns The exemption is calculated per insured person, on their share of the cumulative outstanding balance: the table that tells you, person by person, if exempt.
• Mortgage insurance share: 100/100 or 50/50, how to choose as a couple What remains due to the survivor depending on the chosen split, the overlooked effect on sickness benefit, and a decision grid based on the income gap.
• Continuity of cover: what you lose, or do not lose, when changing insurance Changing your loan insurance does not reset any counter on the cover. What is carried over, what is not, and the clause to have written.
• The TAEA: the single figure that compares two insurance policies, and how to read it What the TAEA actually measures, why a premium rate is not one, and the three normalisations without which it compares nothing.