Loan insurances cover the monthly payments of a loan when the borrower can no longer pay them. They protect the borrower and his relatives, while reassuring the bank.
When the borrower can no longer repay his loan following an illness or accident, Death-Disability insurance covers monthly payments. If the borrower dies, she repays the rest of the capital to the bank. This insurance can protect your spouse, parents and children, who are not required to repay the remaining principal in your place. To benefit from the Disability-Invalidity insurance, you answer a medical questionnaire. If you do not answer honestly, the insurance can be canceled.
A particular state of health or disability may be the reason for a refusal to insure the borrower against the risks of death and disability under the standard contract. In that case, the AERAS agreement makes it possible to borrow with an "aggravated health risk". Medical experts can offer you an insurance policy tailored to your risk profile. This type of insurance usually costs more than standard death and disability insurance.
Unemployment insurance can take care of or postpone until the totality of the monthly payment. The maximum compensation period is set in your contract. It only works after a waiting period, and only if you are licensed. You receive your unemployment insurance from the moment that Pôle Emploi pays you benefits.
Some tips on loan insurance
Think of ensure all borrowers of the same loan so that the insurance can have an effect indifferently for one as for the other. Check with your insurer to find out in detail the eligibility criteria for the various loan insurances.
On the other hand, do not hesitate to compare several insurance offers between them. Indeed, you do not have to choose insurance in your bank. It can accept another if it offers an equivalent level of guarantee.