Home loan insurance with health problems: what solutions?


Home loan insurance is almost always required by the bank to grant you credit. However, with health problems, finding borrower insurance that agrees to cover you is often a real obstacle course. What solutions are available to you to access the mortgage?

Solution n ° 1: group insurance from the bank

Your bank will offer you so-called group mortgage insurance. This means that all policyholders pay the same rate regardless of their particularities. This type of contract can be advantageous for seniors in good health, for example.

But, as with any borrower insurance, you will need to complete a medical questionnaire. And in the event of a problem, more onerous formalities will be required, such as health examinations or consultation of a medical expert in insurance.

At the end of these time-consuming and stressful formalities, the bank’s group insurance may take one of the following three decisions:

  • She accepts you without conditions and without extra premium
  • It accepts you on payment of an additional premium
  • She refuses you, judging the risk of insuring you too high

In the event of a premium, you will undoubtedly be tempted to see if we can offer you a mortgage insurance contract less expensive than the competition. In case of refusal, you will have no choice but to look for a new insurer.

Note that a refusal of insurance from the bank does not presage a refusal from other insurance organizations, so several solutions are to be considered …

Solution n ° 2: individual insurance in delegation

The insurance delegation allows you the free choice of your insurer. You can therefore use it in the event of an additional premium or simply to pay less for your insurance. This will be the case in particular if the bank’s proposal does not suit you, or if the latter has notified you of its refusal.

Insurances in delegation, meanwhile, offer so-called individual contracts. This means that the price depends on the specific risk represented by the insured and his co-borrower if there is one. It is therefore tailor-made. It is of course possible that you also have an additional premium or that you experience a refusal.

But you might also get a nice surprise. Indeed, each insurer approaches the concept of risk differently. Pricing policies differ from one insurer to another, which usually allows you to receive more than one quote.

With this in mind, two solutions are available to you, but you will have to arm yourself with courage and patience. You can either use online insurance comparators or have a broker accompany you to find insurers likely to accept you at a satisfactory rate.

If both your bank and private insurers refuse, you undoubtedly present an aggravated health risk, or even a very serious one. Don’t panic, the AREAS convention will allow you to borrow …

Solution n ° 3: AERAS contracted insurance

The AERAS agreement (Insure and Borrow with an Aggravated Health Risk) was created in 1991 at the initiative of the French public authorities. It is signed jointly between the State and the partner insurers. Having taken effect in January 2007, it facilitates access to credit for people with an aggravated health risk.

This agreement refers to three different levels of risk:

  • Level 1: so-called “standard” risks
  • Level 2: so-called “aggravated” risks
  • Level 3: so-called “very aggravated” risks

Thus, insurance companies must study levels 1 and 2, then offer you in case of refusal the orientation of your mortgage insurance file in level 3.

The conditions for benefiting from an AERAS loan insurance contract

For your borrower insurance file to be sent to the BCAC (Bureau Commun des Assurances Collectives), the insurer must refuse to grant you level 1 or 2 coverage of the AERAS agreement.

You will thus be able to benefit from an AERAS contract provided you meet the following criteria:

  • Complete a specific medical questionnaire with the greatest precision, without omissions, without approximations and without false declarations
  • Present an aggravated health risk: this may be due to a disability, diabetes, cancer, HIV infection, one or more strokes, a genetic disease, etc.
  • Apply for one or more real estate loans whose cumulative amount does not exceed 320,000 euros
  • Be no more than 70 years old on the last loan maturity date

The advantages of the AERAS convention

The AERAS agreement also provides for the following provisions, so as not to prejudice the policyholders with regard to their borrower insurance:

  • A rate increase limitation limiting the additional premium requested by the insurer
  • A premium capping procedure in the event of low resources (with proof of the insured’s income)
  • Rapid file processing, the duration of which cannot exceed 5 weeks from receipt of the supporting documents
  • Seizure of a mediation committee of the AERAS convention in the event of refusal of insurance
  • The search for alternative solutions such as the surety, the mortgage, the privilege of money lender, the pledge

The AERAS convention ultimately has only one goal: access to real estate credit for everyone, including people with an aggravated health risk.

Indispensable guarantees included in the AERAS insurance

Once the proposals have been received within the framework of the AERAS agreement, you have 4 months to accept or refuse the offer. This provision gives policyholders time to compete.

In terms of guarantees, you will benefit from the minimum required, namely the death guarantee and the PTIA guarantee (Total and Irreversible Loss of Autonomy) for a disability equal to or greater than 70%.

The lending institution is not entitled to charge fees for setting up a delegated borrower insurance policy, so it is necessary to compare the offers to borrow with an aggravated health risk under the best conditions.