If you want to apply for a home loan, you will most likely need to buy a borrower insurance : it is she who guarantees the bank that the repayment dates will be honored, even in the event of death, illness, disability or loss of employment. The bank will offer you its own insurance policy, but you do not have to accept it: you are free to contact other organizations.
On the other hand, the bank is entitled to demand that its competitor’s guarantee conditions be at least equivalent to his own. It is the list of these requirements that constitutes the most important point of the Standardized Information Sheet (ISF).
1. The minimum warranty requirements
To compare the borrower’s insurance without being overwhelmed with information, the ISP must have a maximum list of 15 guarantee criteria. It is up to the bank to choose, among the 26 defined by the law, 11 criteria concerning general guarantees (death, illness, permanent disability) and 4 others concerning the loss of employment. Beyond these 15 criteria, the bank can not refuse that you subscribe to a competing offer.
2. The mandatory details of the ISP
The standardized information sheet also contains other information. In the first place, the guarantees that have been listed must be precisely defined and described: for example, what are the conditions for a work accident to be covered?
If you are borrowing as a couple, the ISP must also specify the insurance coverage for each co-borrower : this is the portion of the reimbursement that will be endorsed by the insurer in the event of death, disability or loss of life. employment of one of the members of the couple. Quotas may vary depending on the type of guarantee: most contracts offer 100% coverage in the event of the death of one of the spouses, and 50% in case of loss of employment.
3. The cost of the contract
It must be indicated in a clear and legible way, in three forms: the amount of the annual or monthly contribution, the total amount of the insurance over the entire duration of the loan, and the TAEA, the Annual Effective Rate of Insurance, which expresses this total cost as a percentage of the capital borrowed. This summary information from the standardized information sheet allows you to quickly assess the cost of your loan insurance.