Explanation on termination of insurance borrower

Termination of a contract is an act terminating it. Termination must be made in accordance with the clauses of the contract as well as the legislation in force. In terms of borrower insurance, the conditions of termination are set by the insurance contract.

Both the insured and the insurer have the option of terminating an insurance contract after a period of one year starting on the date of subscription.

More on termination insurance

More on termination insurance

Did you know that by terminating your loan insurance contract and replacing it with another one, you can realize substantial savings?

To buy a mortgage, you most certainly had to take out a borrower insurance. The bank has indeed offered its own insurance contract to insure your loan. Loan insurance allows a repayment of your loan maturities in the event of the occurrence of a guaranteed risk (death, disability, incapacity for work). Its cost can represent from 15 to 35% of the total cost of the loan. It is therefore recommended to put insurers in competition to minimize the cost of borrower insurance. Yet only 20% of borrowers opt for “insurance delegation”, which is the fact of taking out their loan insurance outside the lending institution.

With the Lagarde law, since 1 September 2010, borrowers can freely subscribe to another loan insurance than the one presented to them by the lending bank. With guarantees of at least equivalent level, the bank can not oppose the implementation of the outsourced contract, nor change its loan rate. And since March 17, 2014, the Hamon law allows you to cancel your insurance contract during the first year to replace it with a more advantageous offer.

Termination Insurance Loan


By canceling your borrower insurance and replacing it with another contract, you can halve its cost! To find the best deal, contact a loan insurance broker and use online insurance comparators.