Compensation coverage is the method of reimbursement proposed by the banks in their group contract related to the subscription of a mortgage. Compensation is for Partial Permanent Disability (PIT), Total Permanent Disability (ITT), Total and Temporary Disability (ITT) and Job Loss.
It allows a refund by the insurer calculated based on the loss of income of the insured.
More on the assumption of responsibility
In order to take out a mortgage, banks ask their clients to take out credit insurance to guarantee the latter against the risks of death, disability, incapacity for work and loss of employment ( optional guarantee). Among these guarantees, the death and PTIA guarantees (total and irreversible loss of autonomy) are systematically required and allow, they, a total assumption of the capital remaining due by the insurer (according to the insured portion).
The other guarantees allow either a compensatory assumption or a lump sum payment.
The amount of the assumption of indemnity is calculated according to the loss of income of the insured. The insurer takes into account the indemnities received by the insured, paid by other organizations, to compensate him. If the benefits received by the latter cover the loss of income, the insurer pays no compensation.
For flat-rate compensation, the amount covered by the insurer in the event of a risk event covers the entire monthly payment or is fixed in the contract, and is therefore known in advance by the insured. It is, therefore, more interesting to get a flat rate rather. Lump sum coverage is offered by insurance companies as part of a delegation of insurance.
Indemnity: The word of the broker
Do not accept the group insurance policy of the lending bank without having previously compared it with other credit insurance offers available on the market. Indeed, by opting for the insurance delegation, you can not only benefit from better conditions, such as flat-rate compensation but also reduce its cost by up to 60% compared to the price of the group insurance contract of your bank. lending.