Taking out home loan insurance can be more complicated when significant health problems occur or occur. In this case, the AERAS convention exists.
The convention that allows insurance with an aggravated health risk
When a borrower is struck or has suffered from a health problem, it can be difficult to find borrower insurance. Depending on the case, it is still possible to obtain coverage on less favorable conditions such as an additional premium or the exclusion of certain guarantees. Other organizations may refuse to insure credit. However, the borrower’s insurance is required by the bank for the establishment of a mortgage. Thanks to the AERAS agreement it is possible to “insure and borrow with an aggravated health risk”. We speak of an increased risk to health when the risk of death or disability due to illness or disability is above average. All persons wishing to borrow and who present this aggravated health risk can therefore be affected by this AERAS agreement.
The steps to follow to benefit from the AERAS convention
The deal is granted to borrowers who present an aggravated health risk and after studying the health quiz. Of the further medical examinations may be required. They must be carried out in a center authorized by the insurer.
Very often the insurer must apply a reference grid with 3 levels of analysis. The response usually arrives within 5 weeks of receiving the complete file. Banking institutions and insurers undertake to inform the borrower in writing in the event of a refusal of a loan due to exclusion from insurance.
Find Loan Insurance with Lemoine Law
The Lemoine law aims to facilitate access to insurance for the borrower. Hence, the time limit for exercise the right to be forgotten for people with cancer or hepatitis C has been reduced to 5 years. As a result, former patients are no longer required to report their previous illness if the treatment protocol that allowed them to recover has ended for more than 5 years. Also, the Lemoine law delete the health questionnaire for loans whose outstanding insured amount is less than € 200,000 and repayment of which occurs before the borrower turns 60. However, some insurers may raise their rates to offset the risk.
This is why it is more advisable than ever to use a mortgage insurance broker. This expert will be able to direct the borrower to the organization that offers the best insurance: the one that offers the best guarantees at the lowest price based on the borrower’s profile and project.
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