Home Loan Loss Insurance What is it?
The loss of employment insurance must be underwritten at the beginning
This option must be subscribed initially at the same time. It can not be added later unless you subscribe separately from another insurance company than the one that insured you for DC / PTIA.
Unemployment insurance home loan: waiting times & compensation
There is a waiting period, usually six months after subscription and/or a grace period, usually three months.
Compensation periods are in the vast majority of cases limited (eighteen months maximum). The amount of care varies depending on the institution and the choice of the borrower: 50% or 100% of the monthly payment.
Understand what will be your responsibility
When subscribing, be sure to understand your contract and what part of the term will remain your responsibility. Some contracts will compensate according to a fixed fee based on a scale upon accession, others will compensate based on the shortfall resulting from the difference between your employee income and your unemployment income.
List of 8 characteristics that the CCSF uses to effectively compare insurance contracts
As we pointed out above, all the criteria differ from one contract to another, so it is essential to study the terms and conditions of the contract that you plan to subscribe before finalizing your membership.
The list below will help you to see more clearly and will give you the list of points to compare when planning to take out insurance unemployment mortgage. Among this list, banks must choose 4 criteria at most out of 8:
- Coverage of the guarantee for the duration of the loan without age limit: □ Yes □ No
- Waiting period for the application of coverage: □ ≤ 3 months □ ≤ 6 months □ ≤ 12 months
- Franchise period: □ ≤ 60 days □ ≤ 90 days □ ≤ 120 days
- Duration of compensation per claim: □ ≥ 12 months □ ≥ 24 months
- Total duration of compensation of at least 36 months: □ Yes □ No
- Part of the due date: □ ≤ 50% □ ≤ 75% □ <100% □ 100%
- Benefit equal to the assumption of the monthly payment, without reference to the loss of income sustained at the time of the loss: □ Yes □ No
- Management of the claim without seniority on permanent contract: □ Yes □ No