Loan Insurance: The Importance of Completing Your Questionnaire
Why fill out a health form?
As you probably know, when you take out a home loan, the bank requires you to buy borrower insurance. It protects lender and borrower: in case of “accident of life” (disability, death, loss of employment), the insurer takes over in the payment of your monthly payments.
Of course, there is a price: you pay an insurance premium every month. And to fix it, the insurer relies in particular on a health questionnaire. This document allows him to assess the risk of accident or illness that may present the borrower.
What information is requested in the medical questionnaire?
The questions are about a long duration and concern the identity, the size, the weight, the fact that you are smoker or non-smoker, the pensions paid if necessary by the social organisms, your medical situation, your medical history (operations suffered, blood tests) and your future situation (hospitalization in the coming months?).
Note that an additional medical examination may be requested depending on the answers provided.
The questionnaire must be completed in good faith
Since insurance rates are calculated on the basis of one’s medical history, it may be tempting to reduce one’s medical history or current health situation, or to lie, for example, about smoking. This is a very bad option. In fact, in case of “hard blow” (an illness for example), insurers peel your answers and in case of omission or lie, you could be heavily penalized. This can range from premium increases to cancellation of the contract.
In the second case, the payment is canceled, the contributions already paid are not reimbursed and the remaining premiums can be claimed for damages.
In the same vein, your doctor can remind you of your family history if you are afraid to forget to mention a previous disaster.
Benefit from personalized credit insurance
The cost of borrower insurance is far from negligible. It is the second largest cost item in real estate finance. It is therefore important to compare insurers to have customized insurance proposals and cheaper than the offer of your bank.
Choosing a borrower’s insurance other than that proposed by the lender constitutes an operation called “delegation of insurance”. Needless to say that in order to have personalized rates, you must answer the health questionnaire in a sincere and detailed manner.