To secure a loan despite a health problem?

In France, the borrower insurance is obligatory as soon as one contracts a mortgage. However, according to the French Federation of Insurance Companies (FFSA), nearly 15% of borrowers file a membership application by declaring a health risk. How are the membership processes in these borrowers? What are the solutions for finding insurance


Bank Convention, a multilevel solution

In 2007, the public authorities and patient associations set up the AERAS (Insuring and Borrowing with an Enhanced Health Risk) convention in order to allow all borrowers to find a borrower insurance with an illness . This convention is based on 3 levels.

The first level is the one through which all borrowers pass when they file a membership application that includes, necessarily, a health questionnaire.

In a second step, if the insurer does not want to insure this risk, it goes through the 2nd level which is often a specialized reinsurer (SCOR, RGA ..).

As a last resort, the 3rd level of the AERAS convention , allows access to a very aggravated risk pool. There were 8,345 cases in 2013. Fortunately, only a tiny part of people are totally denied insurance, but despite everything there is a significant gap between clinical research and insurance proposals that often involve heavy surcharges (up to ‘to 400%) and many exclusions. This is why patient organizations continued their lobbying work with the public authorities.

The right to be forgotten: fight against double punishment

In this line, this year, the government wanted to repair the injustice of “double punishment” for some former cancer patients. Two cases were mentioned: the young patients who had been put back since their 15th year and the patients who had been cured for more than 15 years.

Currently, insurers who investigate with their life-long health questionnaires could charge premiums to these borrowers who feel it is a perfect injustice because they are cured but will have to pay twice as much for their insurance as a result. It is therefore legal now to no longer declare these old pathologies. Other types of diseases will soon be included in this right to be forgotten but it is necessary to wait for the decrees of application at the end of the year to know more.

Insurance delegation: a solution to play the competition

There is also another advice to follow to reduce the price of its insurance borrower. Having worked 22 years for many insurance companies, I can testify that observes significant differences between the pricing scales from one insurer to another. Most of the banking group insurance is often the most niggling and it is still contracts that individuals take in more than 8 out of 10 cases.

Since the Lagarde law (the right to take out insurance outside your bank before the credit) and especially the Hamon law (the right to change your insurance in the first 12 months), it is a good idea if you have a problem to delegate the insurance of your credit. By using comparators or specialized brokers, you have the choice to compete to find the most competitive solution that will cover you best. And be careful to a point in the terms and conditions of the contract if you have been accepted with a surcharge: the fact of being able to revise the contract allows you to be able to ask to delete it if it is no longer justified in a few years.


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