Borrower insurance can be very useful during a sick leave because it allows – under conditions – to repay the monthly payments of your credit during this period. However, there are various points to look at to be able to benefit from the insurance of your mortgage if you are stopped. How to operate the guarantee and under which conditions? What should I send to the insurer in your file? Can I benefit from borrower insurance if I am already on sick leave? Here are our tips for saving time and knowing everything about it. The story is on tqs-inc.com
Can we obtain borrower insurance when we are off work?
- If you are off work, the insurer will want to know the reason for your stop. If you are stopped for a short period of time following the nasty flu or a slight accident, the insurer will not hold it and you will have no problem to benefit from a mortgage loan insurance. On the other hand, if you are off work for a long period and you do not necessarily plan to resume your activity, you risk from the insurer that he does not grant you the ITT and IPT guarantee, or that he adjourns his decision (that is to say he will propose to wait until the end of your work stoppage to make you a proposal for insurance). Finally, be aware that if you request the purchase of the exclusions on the guarantee for psychological diseases and back diseases (the option plus), the insurer will probably refuse to make you an insurance proposal if you are not working for health problems related to depression or low back pain.
Note: The guarantee does not apply for pregnancy during the legal period laid down in article L122 – 26 of the Labor Code. On the other hand, if it is sick leave for extended pregnancy, the insurance will take over for the repayment of the loan.
- If you are not on work stoppage and are simply looking for information before you take out your insurance borrower, you will find all the answers to your questions below. You can also compare the borrower insurance policies online to access different personalized quotes, and receive the details of the guarantees selected insurers.
How to benefit from my mortgage insurance if I am sick?
First of all, what are the guarantees you have in your contract? If you only have death and (Total and Irreversible Loss of Independence) guarantee, you will not be able to benefit from the stop-work guarantee. On the other hand, if your credit was intended to finance a residential purchase.
Here is an example to understand the difference between the two: after an accident, Fabrice is off work for 6 months (he will benefit during this period of the ITT guarantee) then he will be examined by an expert doctor who will determine a rate invalidity resulting from the accident which may result in the IPT guarantee. If the disability rate is higher than 66%, it is the real estate borrower insurance that will take full charge of the future loan maturities.
Attention to two points:
- The deductible: the guarantee will start after a certain period depending on the franchise period you choose. This is generally fixed at 90 days but can be redeemed at 30 days or extended to 180 days.
- Exclusions: There may be some exclusions. For example, back disorders (disc and/or vertebral and/or root disorders) and psychiatric disorders (schizophrenia, psychotic disorders, anxiety disorders, neurotic disorders, mood disorders, delusional disorders, depression of any kind, disorders personality and behavior, eating disorders). However, these exclusions may be withdrawn from your contract if you have chosen the PLUS option with the guarantee. This will increase the price you have to pay for the insurance, but it is an additional guarantee. This option is also required by some banks to respect the equivalence of guarantees, we integrate it directly into your quote based on the bank indicated on our loan insurance simulator.
What documents do I send to the insurer if I am sick?
It will be necessary to address to the insurer as soon as possible:
- a declaration of the Insured, on the form drawn up by the insurer,
- a medical certificate on printed form was drawn up by the insurer,
- the components or the certificate of benefits of Social Security if the member is social insurance,
- a proof of Social Security and half-time therapeutic case (Partial Temporary Incapacity guarantee of the contract),
- the depreciation schedule stopped on the date of the stoppage of work.
Good to know: the request for compensation must be made in writing to the insurer, before the expiry of the grace period, except in cases of force majeure. The beginning of this period is fixed in case of an accident, the day of its occurrence, or in case of illness, the day of the first visit of the attending physician. In the event of a late declaration, the insurer will assume the loss from the date of the declaration without applying the deductible, this deductible being considered exhausted. Work incapacity of less than the absolute grace period provided for in the membership certificate will not give rise to any payment.
How does insurance work during sick leave?
The compensation granted by the mortgage insurance will take effect after a certain period of a work stoppage. Being able to go from 30 to 180 days, this waiting period must be verified before any signature.
There are also two compensation principles offered by insurers:
– the principle of indemnity: in the face of a total or partial loss of salary of the borrower, the insurance will pay you the equivalent of your loss of income, subtract from the indemnities paid by your provident societies and the social security.
– the lump sum insurance will only cover the repayment of your loan, until its expiry, according to the proportion envisaged in the contract.
Good to know: the amount of loan maturities paid by the insurer is calculated in proportion to days off work, within the limit of 100% of the amount of due dates and a cap per insured per month of:
- 10 000 euros for the insured exercising a professional activity on the day of the accident;
- EUR 3 800 for the insured person who does not carry out any professional activity on the day of the accident.
When does the guarantee stop working during sick leave?
The insurer stops payments:
- in the event of a resumption of work (except in the case of a half-time therapeutic, in business for example, where the insurer pays at least 50% of the amounts due under the ITT. 180 days);
- if a medical report, requested by the insurer, establishes that the insured is not in total physical disability and continues to perform his professional activity, even surveillance or management, likely to gain him gain or profit;
- if a medical report, requested by the insurer, establishes that the insured person who does not exercise a professional activity at the time of the loss does not observe a complete and continuous rest in his home or in a hospital or re-education center, obliging him to interrupt all his usual occupations (especially domestic work and management of family and personal matters);
- at the date of consolidation of the insured’s condition;
- in any case, on the date on which the insured reaches the age required to assert his rights to an old-age pension and, at the latest, on the day of his 67th birthday;
- no later than the 1,095th day of coverage by the Insurer. A management study for total permanent disability (IPT) is then initiated if the IPT guarantee is underwritten.
- at the end of the loan.