Being a smoker greatly increases the risk of claims for borrower insurance, which is therefore more cautious in providing guarantees at competitive rates. Most impose surcharges or offer to buy certain guarantees at far from advantageous prices. What is the difference in this context between group contract and insurance delegation for a smoker?
Insurance delegation and group insurance
Loan insurance is inevitable for any real estate purchase covered by a loan. For a long time, the rule has been to take out the group contract submitted by the lending institution, but the 2010 Lagarde law opened the door to competition by authorizing the delegation of insurance taken out with another body. Two very different options: group insurance consists of pooling risks by standardizing the types of insured, the guarantees offered, and the premiums.
This type of contract is simple and quick to sign, but only very briefly takes into account the actual situation of the borrower. Conversely, insurance by delegation allows competition to be played by soliciting insurance proposals from organizations outside the lending institution, provided that the equivalence of the guarantees is respected.
Why use the insurance delegation?
When you know that a mortgage loan insurance costs on average twice as much for a smoker according to Ganhu, it can be interesting to play the competition. But the delegation of insurance requires pushing the door of many organizations, in order to study the precise situation of the borrower who smokes, and find the one who agrees to offer the best conditions of cover at the best price.
Loan insurance brokers are available to take advantage of their privileged link with insurers, but also their experience and professionalism to help the borrower to carry out this time-consuming and technical task which makes it possible to find the best guarantees at the best tariff. In any case, quitting smoking can reduce the cost of your loan insurance premiums. After twenty-four months without a cigarette, you are no longer considered a smoker! Conversely, be careful because a false declaration may result in the nullity of the contract.