In terms of personal insurance, as in the case of borrower insurance, it is common to have a contract mentioning waiting periods and franchise periods.
The two concepts are distinct and should not be confused. We take stock of these essential deadlines to fully understand your mortgage insurance …
The waiting period for borrower insurance
The waiting period in terms of borrower insurance corresponds to a defined period during which one or more guarantees cannot come into play. In the event of a guaranteed claim occurring during the waiting period, you cannot therefore be compensated. , even if you request it after the deadline.
This period may be non-existent, or range from a period varying between 1 and 12 months at the choice of the insurer. It may also be different depending on the type of guarantees. Thus, if the accident is rarely the subject of a long waiting period, the loss of employment guarantee may be subject to a waiting period of one year.
The waiting period is counted from the effective date of the contract. If the loss of autonomy guarantee has a waiting period of 6 months, and you took out your contract on the 1ster January 2021, you are actually covered for this risk from the 1er July 2021.
Here, the insurer’s will is clear: it insures the borrower against a risk that is by definition uncertain. The establishment of a waiting period prevents insurance fraud, if for example, you take out the borrower guarantee with loss of employment knowing that your dismissal is imminent.
However, while the waiting period is one year in the event of suicide in most insurance contracts, there is an exception to this common law rule. Indeed, the so-called “group” borrower insurance, that is to say taken out with his bank, must compensate the suicide the first year in the event of acquisition of a main residence up to 120,000 euros.
Good to know : the waiting periods appear in the general conditions of the contract, they cannot therefore be negotiated, but they can never exceed 1 year.
The borrower insurance franchise period
The franchise period differs from the waiting period. Here, the guarantees are acquired, but you have to wait until the end of the franchise period to claim compensation.
The franchise period is generally shorter than the waiting period, and extends over a period of 1 to 6 months depending on the guarantees. In practice, it is negotiable, but be careful, this increases the price of borrower insurance.
It is counted from the date of occurrence of the loss. If the invalidity guarantee has a 6-month franchise period, and your invalidity is noted on the 1ster January 2021, you will be compensated from the 1er July 2021.
Good to know : check that the franchise period cannot be offset by another contract that you already have, such as employer provident insurance for example.
Is mortgage insurance without deductible possible?
As you will have understood, the distinction between these two periods is fundamental, since in the case of the waiting period, you never benefit from the guarantees taken out, while in the case of the franchise period, you simply delay in time the compensation.
It is possible to find mortgage insurance contracts without a franchise period, but most of the time there will be one or more waiting periods imposed. Note that a borrower’s guarantee is valid for the entire duration of the mortgage, so it is often preferable to pay less each month and to accept the deadlines proposed by the insurer.
Of course, these must be compared according to the guarantees and the price offered, in order to check that they are not clearly exaggerated in relation to the competition.
To this end, using an online loan insurance comparator will allow you to get the best mortgage insurance at the best price in a few clicks. Without obligation and free of charge, you will of course be able to study all the waiting periods and excess before signing your contract.