A profit delegation consists in taking out an insurance contract to guarantee your home loan from an institution other than the banking institution. The profit delegation can not be refused by the bank when the level of guarantee is at least equivalent to that of the insurance contract presented to his client.
More on Profit Delegation
To contract a delegation of profit , and to reduce the cost of its borrower insurance, it is recommended to contact a broker specializing in loan insurance. You will then have to complete a health form with the selected insurers and then receive your quotes, among which you will only have to choose your contract.
The insurer is responsible for transmitting the benefit delegation to the lending institution. This is a document containing the guarantees granted and the amount being insured. Theoretically, it seems easy to resort to the benefit delegation, but in practice, banks are rather reluctant because their margin on the loan insurance contracts they offer to their customers when issuing an offer loan is substantial.
Since the guarantees are at least equivalent, the banks are obliged to accept the benefit delegation. The Lagarde law of 2010 also requires that any refusal be motivated in writing and prohibits a change in the terms of the proposed credit rate. By delegating your credit insurance, you benefit from tailor-made coverage and can realize significant savings (up to 60%) if you are young (under 40 years old) and present only low risks.
The group contract proposed by the banks to their customers, as part of the issuance of an offer of mortgage credit, may exclude a borrower because of a high age, health problems, the exercise of a hazardous job or the practice of a risky sport. The insurance delegation is therefore very interesting because the offer is tailored to the profile of the borrower.
Insurance can be split over two heads, in case there are two co-borrowers. Its total must be at least 100% (70 / 30,60 / 40, 50/50 …) and at most 200% (100% on each head).
The word of the broker
The law on consumption 2014 (Hamon law) allows you to replace your group insurance contract, within 1 year from its signature, by a contract of benefit delegation .