Banks make real estate loan offers with insurance-borrower. Any borrower looks for ways to have a cheap home loan. How at the same time reassure the lender?
He can do this by focusing more on life insurance than disability death insurance.
Why use life insurance?
Using the life insurance policy is a great way to secure a home loan from a lender. The latter examines the quality of the file.
The lender assesses the risk of non-repayment based on a few parameters including financial capacity, health status and age. A guarantee is required in the event of death and disability. The lender then offers insurance to his institution to cover the imponderables. If after one year, the borrower is not satisfied, through the delegation of insurance, he can go to another home insurance.
How to use life insurance?
To obtain credit, life insurance must be used to secure a home loan. In other words, it is to sideline the insurance-borrower. How to do it ?
The borrower refers to the bank as a first-rank beneficiary. This is possible by the pledge or by the delegation of debt. In case of non repayment of loan for death and other disability, the legal device is triggered. The lender has the right to request a redemption of the sums due. At the time of death, if the loan is due, the lender will be the beneficiary of the loan balance.
What advantages does the delegation of debt offer?
The delegation of debt is free. It even makes it possible to reduce the cost of credit by a favorable rate and to avoid paying fees required by the use of a mortgage. The borrower invests in his savings effort and protects himself against all risks.
The borrower should not forget that the life insurance policy generates interest and retains the age of taxation. The delegation of debt allows for savings related to death insurance.
Before guaranteeing the contract, it is recommended to secure the savings held in units of account by means of arbitration in favor of the euro fund. It is good to always be accompanied by a professional insurer in the process.