In today's uncertain economy, with rising unemployment rates, a job loss guarantee in borrower insurance offers critical peace of mind. This coverage ensures your insurer steps in to repay your loan until you secure stable employment again.
Borrower insurance typically covers death, total temporary incapacity, total and irreversible loss of autonomy, and permanent or partial disability. You can enhance this foundation with a job loss guarantee, which repays your loan if you lose your job and can't meet payments. Activation requires dismissal by your employer—exclusions include serious misconduct, resignation, contractual termination, trial periods, seasonal or partial unemployment, and early retirement.
Costs vary by profession, salary, and age, typically 0.10% to 0.60% of the borrowed capital. For a 30-year-old borrowing €200,000 at 0.40%, expect €16,000 total. Note a 6-12 month waiting period and possible 3-9 month grace period before payments begin post-dismissal.
Eligibility is strict: permanent contract employees only. Excluded: farmers, self-employed, freelancers, fixed-term/temporary workers, traders. Minimum seniority: 6-12 months. Age limit: up to 55-65 years. Proof of unemployment insurance (e.g., ASSEDIC) required.
Compensation varies (30-80% of installments), rarely full coverage. You may select a percentage, but higher rates mean pricier premiums. Options include fixed or progressive (e.g., 50% first 6 months, 70% next 2 years, 80% thereafter). Caps apply, like €1,000/month. Coverage lasts 36-48 months.
