What happens in the event of a loan subrogation?

What happens in the event of a loan subrogation?

What happens in the event of a loan subrogation?

In case of subrogation of the loan, if you have signed the policy proposed by the Providing Body, the coverage automatically expires when the loan is extinguished. If you want to continue taking advantage of the insurance coverage, you will therefore have to take out a new insurance policy. It is important to consider that in the course of life, the insurability conditions (state of health) existing at the time of signing the loan could have changed in the subrogation phase with the possibility, in the most serious cases, of the Company’s refusal to assume the risk. of insurance in the phase of new membership following subrogation.

Can I make changes to the current policy?

Most of the policies on the market do not provide for the possibility of changes. It is important to consider this when choosing mortgage insurance. The mortgage is a lifetime commitment and needs can change over the years. Having the possibility to modify the guarantees in the course of the contract (in addition or decreasing) or the possibility of managing the insured capital following early partial extinctions or renegotiations, is an important factor to take into consideration to be sure of having guarantees. always in line with your needs.

Can I change the name, joint or transfer the policy?

Also in this case it is necessary to make a distinction between the policies offered by the Bank and those available on the market. Most of the policies offered by the Providing Bodies do not provide for the possibility of transferring the Contract. However, there are policies that provide for the possibility of changing the name (change of contracting party) as well as underwriting by legal entities.

Can I combine the policy with another one I have on a second home?

Mortgage insurance was created by definition to insure a loan. In the event that multiple mortgages or different loans have been signed (eg mortgage, furniture loan, and car loan), it is possible to insure them all with a single policy. If there is this need, it is necessary to make sure that the proposed insurance is able to handle this case before subscribing.

If I have to review my mortgage due to home renovations, will my policy cover a higher mortgage?

Most of the policies on the market do not provide for the possibility of renegotiating the amount insured during the course of the contract. It is also important to evaluate this option when choosing your mortgage insurance to be sure that you always have a policy in line with your needs.

What happens if you change banks with mortgage insurance?

Almost all of the CPI policies proposed directly by the Bank are strictly linked to the loan granted by the Providing Body itself. In the event of a Subrogation, this type of policy cannot be transferred to the new Loan of the new Providing Body and therefore the policy automatically lapses with the return of the unused portion of the premium. At the time of the subrogation, the possibility must be taken into consideration that the Insured will find himself with a varied risk profile (older age) and certainly worse than the first time he took out the Loan with consequent negative impacts on the premium to be paid. (Individual) policies are available on the market that can adapt to changes of this type.

It is important to make sure that your insurance adapts to the new repayment plan without any interruptions to guarantees. In the event of subrogation, the details of the new Paying Body must be communicated to the Company and the new amortization plan must be sent so that the premium can be adjusted by reimbursing the unused portion of the premium or integration, in the event of the choice of payment with an early single premium. , or recalculation of the new installments, in case of choice of periodic premium.

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