Termination of the borrower insurance at any time is possible thanks to the Lemoine law from June 1st for new loan offers issued as of that date. For all other borrowers who took out the loan before June 1, 2022, this will be possible very soon from September 1. There is no need to wait for the loan anniversary date, you can also start simulations right away to compare the current cost of your borrower insurance against offers from other insurers and thus save money. The only condition is to submit an offer with equivalent guarantees.
To make your choice, you can count on many online insurance comparators, some of which have improved their customer experience for the occasion. From September, an influx of requests from professionals is also expected. It is the borrowers who have taken out collective insurance from their bank who will be able to realize the most significant savings because alternative insurers can offer rates up to 2 or 3 times cheaper with equivalent guarantees.
Single to triple
Insurance broker and comparator Magnolia.fr cites the example of 40-year-old buyers borrowing € 250,000 over 25 years to purchase their primary residence. Subscribing to the proxy insurance costs them only 7,500 euros with a rate of 0.12%, compared to 22,500 euros if they opt for the collective insurance offered by the bank at a rate of 0.36%. The total savings over the term of the loan therefore represent 15,000 euros.
The consequences of the end of the medical questionnaire
The other important regulatory change in force since June concerns the end of the medical questionnaire for borrower insurance for loans of less than 200,000 euros (or 400,000 euros for a couple in a 50/50 ratio), once the repayment of the credit has expired. before the insured person’s 60th birthday. This applies, for example, to borrowers whose age does not exceed 45 years for a 15-year loan, 40 years for a 20-year loan, or 35 years for a 25-year loan. For this category of borrowers, changing insurance becomes even easier and faster.
Many loans will suffer from this absence of a medical questionnaire which can generate significant additional costs depending on the health history of the insured, including exclusions of guarantees or even refusal of insurance. As a result, insurers will no longer be able to make medical selections on part of the contracts and will have no choice but to pool risk to replace additional premiums and partial exclusions. This risk sharing is rightly defended by banks and explains why bank insurance rates are more expensive than alternative insurers, tailored to each profile.
Smokers are penalized
” With no health data on this segment to support their pricing, insurers are forced to pool risks, at the expense of young and healthy profiles who usually pay less for loan insurance. Professionals speak of a rate hike between 5% and 20%, which penalizes young workers often with lower incomes than other borrowers “, Astrid Cousin, spokesperson for the insurance comparator Magnolia.fr, explained to us at the end of June.
” The registration form has evolved to include data previously entered into the health questionnaire: smoking and practicing a dangerous sport. Occupational hazards are another important factor, such as travel. For example, people who smoke and drive a lot will pay for insurance if they don’t have to fill out a health questionnaire. “, Adds Astrid Cousin.
In practice it is better to be accompanied by a broker. Once you have selected a new insurance, you must send your bank a replacement request by registered letter with return receipt, accompanied by the new contract. The bank must formulate its response within 10 working days of receiving the letter. Acceptance is subject to the equivalence of the level of guarantees, any refusal by the lender must be motivated in writing in an exhaustive and explicit manner.
Another novelty introduced by the Lemoine law, the deadline for benefiting from the right to be forgotten, which concerns people cured of cancer or hepatitis C, has been reduced from 10 years to 5 years after the end of the protocol. The obligations to inform policyholders of their right of withdrawal have also been significantly strengthened: insurers must inform them annually of the existence of this right and of the terms and conditions for its implementation.