In insurance matters, the general conditions define all the rules governing the contract. The general conditions are usually applicable to contracts of the same type defining, in an exhaustive manner, the implementation of the guarantees subscribed.
Before signing an insurance contract, it is important to take the time to read the terms and conditions.
More on General condition
In order to secure a mortgage, the banking institution most often requires that the borrower take out a borrower’s insurance including the guarantees of death, disability and incapacity for work. And from one contract to another, the general terms and conditions may differ significantly. It is therefore advisable to carry out a detailed mortgage insurance comparison in order to fully understand the guarantees and their operation and choose the best offer.
For temporary work incapacity (ITT) and total permanent disability (IPT) guarantees, there are two types of coverage: lump sum compensation and indemnity compensation.
Compulsory compensation: this is the mode of care being the most interesting and reassuring for the insured. It consists of a refund of the exact amount of the monthly payment that the insured has decided to insure.
Compensation indemnity: this method of compensation offers the benefit of disability and disability guarantees at a reduced rate. It consists of a reimbursement of an amount corresponding to the actual loss suffered by the insured, after deduction of the indemnities paid by the social security as well as by the company pension plan.
Depending on the monthly payment of your mortgage, your income and the type of compensation, the benefits provided by the terms and conditions of your credit insurance contract may vary widely. Also, the general conditions for triggering disability and disability guarantees depend on the exclusions included in the contract.
If, in the event of the death of the insured, the general conditions of the contracts are identical, this is not the case for invalidity and disability guarantees. There may indeed be different exclusions: exclusions of risky sports (paragliding, scuba diving, delta-plane …), back disorders, psychological pathologies, blood alcohol … It is therefore recommended to carefully examine the general conditions of the contract submitted to you by checking the exclusions contained therein.
The word of the broker
To make sure you choose your loan insurance policy, contact a broker specialized in loan insurance. He will inform you, advise you and find the contract with the general conditions being the most adapted to your expectations and needs.