The unemployment insurance guarantee of quality for your mortgage
In view of the crisis period experienced by the French and the growing number of unemployed, it is understandable that borrowers may fear to be faced with a situation generating the loss of income and be unable to ensure the repayment of their real estate credit.
Loan real estate unemployment insurance
It is therefore advisable for borrowers not to hesitate to take out the unemployment guarantee in order to protect themselves in case of job loss. In general, the coverage of an unemployment insurance only partially covers the repayment of a mortgage. However, cheap loan insurance can make you benefit from a job loss insurance that supports the entire repayment of the installments. The assumption of responsibility is effective from the date of the first payment of allowances.
Unemployment insurance loan real estate
In addition, the offer of unemployment insurance insurance cheap loan allows you to retain your rights to compensation despite the resumption of a professional activity, and postpones them for any other period of unemployment by restoring them. The loss of employment benefit can only be taken out in addition to the disability death insurance required for any real estate loan .
Add the unemployment insurance cover on an ongoing real estate loan
If you are currently repaying a home loan, you can, thanks to cheap loan insurance, join the unemployment insurance in the course of repayment, under the condition of being under 53 years old and exercising an activity as an employee.
- Employment loss insurance contribution
- Unemployment insurance calculation
- Job loss allowance
- Unemployment insurance rate
All about unemployment insurance
Unemployment insurance is an optional guarantee of loan insurance. It allows the assumption of monthly payments of your mortgage in case of job loss. It may be recommended by some lending institutions.
Unemployment insurance or loss of employment insurance can only be taken out by employees working under an indefinite duration contract (CDI) entitled to compensation from the ASSEDIC (or equivalent) in case of loss of employment. People who are on notice of termination, on trial or resignations can not subscribe. It is also necessary to justify a certain seniority in the company (from 6 months to 12 months). Finally, there is an age limit that can vary from 55 to 65 years.
Waiting periods and deductible
The waiting period is a period starting from the signature of your contract and during which the guarantee does not compensate you if you find yourself unemployed. This period can last 6, 9 or 12 months.
The franchise period begins upon the first payment of the ASSEDIC, following a loss of employment. This is a period of time that it is necessary to wait before the insurer covers your monthly payments. This is usually 3 to 6 months.
The method of compensation
The method of compensation may vary depending on the lending institutions as well as the duration of your unemployment spell. Depending on the formula, the refund can be total or partial (from 50 to 100%). Some contracts provide for the postponement of repayment terms at the end of the loan, which lengthens its duration. And payment only occurs for a limited period of time, which can vary from 18 to 48 months depending on the insurer. The number of consecutive unemployment spells is also limited by many insurers (up to 3 times).
According to the insurers, the unemployment insurance rate can be calculated either from the amount of the capital borrowed (varies from 0.3 to 0.7% of the capital borrowed), or from the amount of monthly loan payments (varies from 1 to 7% of monthly payments).