Loan Insurance: Credit Debt Insurance


The bank or other financial institutions might sometimes ask you to sign up for loan insurance before accepting your application. It is not mandatory to take out insurance when applying for a loan. On the other hand, the acceptance of an insurance contract will allow you to benefit from a better credit condition. A critique at

What is a borrower insurance?

What is a borrower insurance?

The borrower insurance contract is a guarantee of a loan. Loan insurance covers the risks of non-payment of monthly payments. Insurance as a guarantee against the risk of default by customers protects not only the borrower but also the lending company. It protects the borrower against an accident of life or a professional change. The insurance is attached to the loan . It expires at the end of the credit.

If you decide to take out loan insurance, the insurance should cover the monthly payments if you are no longer able to do so.

There are two types of credit insurance: group insurance or group delegation and individual insurance.



The type of insurance varies depending on the type of guarantee. The insured chooses the guarantee to be included in his borrower insurance contract, ie the risks covered. The insurance could offer you different types of guarantee according to the risks to foresee.

We distinguish, for example:

– The death insurance

– Disability insurance

– Health insurance

– Job loss insurance

However, it should be noted that there are exceptions already defined in borrower insurance contracts. In particular, late payments are not covered by the insurance. Each guarantee also includes exclusions or risks that are not covered. The borrower has the possibility to take out several insurance at the same time to foresee several risks.

How to find a loan insurance?

There are several insurance companies: physical and on the web that offer borrower insurance offers. Benefits vary from one insurance company to another. Your bank or lending institution may also offer insurance. On the other hand, you have the right to refuse the offer of your bank and to choose the insurance institution that suits you.

You will need to provide your insurer with information about you (profession, state of health, …) and on the loan contract (nature, amount, repayment period, interest rate, …). The cost of insurance will depend on your situation.

Know that you have the right to cancel your insurance contract every year for a new profitable one.

Why use a comparator?

How to find a loan insurance? offers you an online insurance comparison service. With the help of a comparator, you can find cheaper insurance with much wider guarantees. Online comparison tools are free. They allow you to perform a quick borrower insurance simulation in just a few clicks. You will simply have to fill out the form and the comparator will then select the most suitable borrower insurance for your profile and the best rates. You can choose the insurance that suits you best from the available offers.


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