Loan Insurance: distinguishing between disability, disability and loss of autonomy
The borrower insurance of a loan offer represents a significant part of the maturities of a mortgage, in order to protect the borrower against the consequences of a disability, a disability or a loss of autonomy. But what exactly do these three situations cover? Criticism at http://sanshinzencommunity.org
Temporary or permanent disability
Inability to work is an incapacity linked to an event in life that prevents the victim from practicing his profession for a longer or shorter period, in whole or in part. Three types of disabilities are to be distinguished: total temporary work incapacity (TTI) requiring a complete withdrawal from the workstation during a specified period in order to promote convalescence, permanent partial disability (PPI) which makes it impossible to full-time work placement (the disability rate is then assessed by the Social Security between 33 and 66%) and the total permanent disability (IPT) for which the disability rate is higher than 66%, making it impossible to practice any profession. The home loan insurance intervenes then to compensate for these losses of definitive income, and to refund the mortgage.
Disability of the beneficiary
Disability is defined by the Social Security and results only from an accident of life, or a non-occupational disease, leading to a loss of income of at least 2/3. The bringing into play of this guarantee and the recognition of disability by the Social Security offers the possibility of receiving a pension to compensate for the loss of salary related to the state of health.
It can again be categorized as permanent and partial (IPP) according to a disability rate set by Social Security, or permanent and total (IPT) that prevents the exercise of any activity, and must be imperatively noted before age 65 years old.
Loss of autonomy
The loss of autonomy makes it irreversibly impossible to engage in paid work, but also obliges the beneficiary of the guarantees to call for assistance for everyday acts of life. It must be recorded before the 65th birthday of the borrower and corresponds for Social Security at a rate higher than 100%. In such a case, the insurer reimburses the amount of outstanding capital in accordance with the contractual indemnity limits.