Health risks are a determining factor in the preparation of the loan insurance contract. Insurers are particularly attentive to the medical history and current state of health of the borrower.
What is an aggravated health risk for mortgage loan insurance?
When a borrower has fallen ill, if his state of health presents certain pathologies, or because of possible hereditary health concerns, this one can be considered as at increased risk of health or presenting a medical risk, by the body of loan insurance. The pathologies listed as an aggravated health risk evolve over time, however we can for example distinguish:
- Cardiovascular illnesses ;
- Diabetes ;
- Chronic or long-term illnesses;
- Disabilities ;
- Cancer ;
- Medical history such as a transplant or cancer.
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During the subscription, the borrower will have to fill in a medical questionnaire in which he will inform all the pathologies from which he suffers and his medical history. During this stage, the borrower has a (legal) right to be forgotten which allows him not to mention certain medical histories, in particular cancers from which he has been fully recovered for 5 years if the disease was diagnosed before his 18 years, and 10 years if it appeared after this age.
It is essential to fill in the medical questionnaire accurately, otherwise your contract may be declared null by the insurer if it discovers a false declaration.
The medical questionnaire allows the insurer to take the measure of the health risk incurred by the borrower. When the borrower presents a risky pathology such as a chronic disease, the health risk is said to be “aggravated” and the rate applied will thus be higher than the normal rate.
If the assessment places the risk at a very high level, additional premiums may be required and / or guarantees excluded. When the risk is deemed too high, the contract can be refused.
How to properly insure your loan with a medical risk?
Everything will depend here on the risk in question. However, it is possible that the group insurance offered by the bank is not the most advantageous, since it is calculated on shared and not individual risks. Thus, the credit insurance delegation, provided for by the Lagarde law, and the possibility of changing insurance during the loan provided for by the Hamon and Bourquin laws allow the borrower to take advantage of competition.
Comparing borrower insurance is essential in order to find the right coverage based on your profile and medical risks. To facilitate this process, being accompanied by an insurance broker can be useful. Indeed, his support represents a saving of time because he finds for the borrower the insurance offering the best guarantees according to his profile, at the best price among his partners. In the case of a change in loan insurance, he can also help the borrower by canceling his current insurance for him.
Note however, if your pathology really hinders the subscription of your home loan insurance: a solution exists for people with an aggravated health risk : this is the AERAS convention. Signed jointly by the public authorities, banks, insurers and certain associations, it aims to facilitate their access to mortgage loan insurance. 20% of files obtain coverage using this agreement.