Senior Mortgage InsuranceOn March 10, 2019 by Theresa Terry
Senior loan insurance: the use of a delegated insurance contract is essential
Banks are adapting more and more to provide loans to seniors because they have understood their real purchasing power and especially have adapted to the aging of the population (84.9 years for women and 78.5 years for men).
It is therefore not because one is a senior that one can not make a mortgage and resort to a loan insurance.
Be careful though. When you subscribe to a home loan
Your bank will probably not be able to offer you your own insurance policy because most bank contracts will only cover you until you are 70 years old. So if you die after age 70 and your credit is not completed, your heirs will have to repay. It is therefore strongly advised to take out a contract in insurance delegation, as the Lagarde law allows you since 2010. Thus, you will be able to access delegated loan insurance contracts which allow a membership up to 85 years and of which the guarantees will cover you until the age of 90.
Thus a person aged 60 can fully subscribe to a mortgage for a period of 20 years.
In any case, pay close attention to the following 2 points when you are looking for a loan insurance contract:
- The age of subscription which indicates the age limit at which you can subscribe to guarantees.
- The age of termination of benefits which indicates the age up to which you will be covered by the insurance.
In addition, the delegation of insurance will be almost indispensable for seniors because bank group contracts often do not take into account specific risks such as certain diseases.
Senior Loan Insurance: Certain Guarantees Are Not Useful From Age 65
Note that for retired seniors, only DC and PTIA guarantees will be required to secure their loan since their income is insured. The PTIA guarantee will stop in almost all contracts at 70 years of the insured and will not cover you until the end of your contract. But the banks know it and will accept that you will be covered until the end of your credit for the death alone.
The guarantees ITT, ITP and IPT, IPP are therefore useless because your incomes are insured, you do not depend any more on a professional situation to have income. Moreover, it is only possible to subscribe to these guarantees up to the age of 65 and these guarantees will never cover you after the age of 70.
In any case, we advise you to appeal to us: we will be able to offer you a contract adapted to your situation and especially that will be accepted by the bank that finances you (because your loan insurance contract must respect a equivalence of guarantees with the one offered by the bank that grants you the mortgage).
Senior Loan Insurance: Medical Formalities
The older you are, the more insurance companies will ask you to complete detailed health questionnaires and perform more advanced medical exams.
Some of our insurance partners offer more flexible medical procedures for senior citizens, depending on the amount of capital borrowed and thus to be guaranteed. Move closer to us, we will direct you to the most suitable company for your profile in order to try to limit medical formalities.
Senior Loan Insurance: Compare Prices
Companies offering loan insurance solutions for seniors are more and more numerous. They offer policies with age limits for underwriting and hedging adapted to senior borrowers as well as their state of health. Some contracts are particularly well positioned in terms of rates for this borrower profile, others less: do not hesitate to use our comparator to find the contract with the best report guarantees/rates.