The insurance loan real estate is mandatory and that the insurance is taken in the breasts of our insurance company, we require to individuals in regards to the risks of death and disability. Proposed by the lender.
The Warranty Death-Disability-Incapacity
This insurance recovers, in fact, three types of warranties: a warranty “Death”, a warranty“permanent and absolute Disability” and a warranty “temporary Incapacity of work”.
The two first, present in all the contracts, allow the full repayment of the remaining capital due. The third, whose conditions appreciably vary from one contract to another, only takes charges the monthly payments with them for the period with incapacity.
In practice, the warranties Death and Disability poses few problems of interpretation. On the other hand, the warranty Incapacity frequently is the object of certain litigations because of the complex definition of the guaranteed risk.
The Death Risk
In the event of death, the insurer refunds the remaining capital due. But it does not take charges with them the arrears or unpaid former.
The heirs to the policy-holder must provide, in thedays which follow the death, an individual record sheet of civil status being worth death certificate,and a medical certificate by indicating the cause.
The Disability Risk
The warranty permanent and absolute Disability is comparable with the warranty death. In the event of disaster of this type, the insurer refunds the remaining capital due. Provided naturally that this disability results in an absolute and final impossibility to carry on any activity being able to get incomes.
Some institutions place additional restrictions : excessive consumption of alcoholic beverages, use of drugs, drug substances outside the limits of prescription, refusal to treat, worsening of a partial disability, existing membership, etc
The Incapacity Risk
While the guaranteed Death Disability takes care of the reimbursement of the remaining capital due on the day of the disaster, the warranty Incapacity for work does not ensure that the reimbursement deadlines for the duration of the disability.
The main source of disputes generated by this warranty is made to the definition of temporary incapacity to work, often very imprecise, the terminology, the indemnity and the list of documents to provide in case of disaster vary from one contract to another.
Thus, the risk is assessed as a function, either of the professional activity determined of the insured borrower, or its ability to exercise a professional activity.
The guarantee of “temporary occupational disability” ceases as soon as the insured is able to resume a professional activity, even partial.
Conversely, it can also cease when the insured is declared to be invalid after an incapacity for work of long duration, which is often the cause of disputes.
Unlike life insurance, which is occurring in capital, the job loss insurance is a substitute partially for the borrower to pay the lender all or part of the monthly payment during a period of unemployment. These contracts are not regulated and their content varies greatly from one institution to another,
The guarantee is acquired only at the end of a period counted from the effective date of the membership. This waiting period varies from one institution to the other. This free period is most often in the range of 3 to 6 months.
All institutions also impose a limit of duration of compensation period of unemployment, ranging from six to thirty months depending on the contract.
All contracts define the potential beneficiaries as individuals who may benefit from the benefits Pôle Emploi and who are in gainful employment under a contract of employment of indefinite duration and which are not, neither in test, nor in the notice of dismissal or early retirement.
For the insurance – death – Disability, the bonus is expressed as a percentage fixed borrowed capital and varies throughout all contract.