Loan Insurance: The steps to follow to changeDebtor
The procedures a little different if your current contract is a bank group contract or if it is already a delegated insurance contract
Below you will find the 6 main steps to follow in order to terminate your group borrower insurance contract:
1 – Within the framework of a Hamon law, it is necessary to cancel in the first twelve months of the life of the borrower insurance contract, in the case of a bourquin amendment, it is necessary to cancel two months before the anniversary date of the contract. In any case, consult us to know the expiry date of the anniversary of the mortgage insurance of your bank.
2 – When subscribing to your loan, was your rate increased because of health problems? If so, you must conduct a medical study to find out if the delegation offers the same terms of acceptance as the loan insurance policy you currently have.
3 – Has your health-status changed since the implementation of your loan? Several scenarios are possible:
* If your state of health has not changed, then you can proceed to the cancellation
* If your medical condition has deteriorated: you must then carry out a medical study with the new companies that we will have selected for you in order to know if they will offer you the same conditions of acceptance as the loan insurance contract that you currently have.
* If your state of health has improved: you may then be entitled to medical negligence.
4 – Consult us to compare more than a dozen contracts and get the best price quote with guarantees equivalent to your current contract and corresponding to the requirements of the bank.
5 – Select with us the best contract and fill out the registration form and the medical form of the new insurance company: your steps are simplified to the maximum, we pre-fill the contract together online, and your return is done by email or electronic signature. After the validation of the documents by the company, we send you your new membership certificate.
6 – Send your banker a cancellation letter enclosing your new membership certificate and new terms and conditions. The bank must send you back within 10 days the amendment to your loan offer mentioning the change of this insurance.
The following are the 7 main steps to take to terminate your individual delegated borrower insurance policy:
The first 5 steps are the same as those for terminating a group contract with a bank.
6 – Send by registered letter with acknowledgment of receipt your new membership certificate and GTC to your bank to request the substitution of your current insurance by this new contract. The bank must return your agreement within 10 days and also issue the addendum to your loan offer mentioning the change of this insurance.
7 – Once the agreement of the bank has been approved, you will have to send it by registered letter with acknowledgment of receipt to your previous insurance asking for the cancellation of your old contract.
Overlapping borrower insurance contracts: namely
Be aware that when you change the borrower insurance policy, it is possible that the old and new insurance overlap over a short period of time and that you will have to pay two contributions over the same period.
Indeed, this is inevitable because to register your new insurance and give your consent, the bank needs to receive a valid certificate of membership mentioning the effective date of your new contract. But often, the time that the bank returns you its agreement and that suddenly you can cancel your old contract, the old contract continues to run while the new one is also in place.
Two solutions in this case:
* Expect an effective date of the new contract sufficiently far (but not too much) to allow time for the steps to be done in time.
* If this could not be done in time, do not panic: when your old contract will be terminated and you will receive the certificate of termination of your old contract, it will be sufficient to send it to your new insurance which you will refund the overpayment between the effective date you originally mentioned and the effective date corresponding to the actual date of termination of your old contract.
In any case, do not worry, we are here to accompany you and guide you!
The interest of appealing to us
We can save you valuable time to change borrower insurance and choose your new contract because we know the particular characteristics of each contract in the market.
So depending on your need and especially the fact that the guarantees of your new contract must be at least equivalent to that of your old contract, we will be able to advise you the most suitable contract.
Finally we will guide you in the formalities to be completed to be able to change the contract in the best conditions and write for you all the mail to send to your bank.