Let there be no mistake: if mortgage rates fall and reduce the cost, loan insurance continues to represent a significant part in the monthly payments devoted to the financing of a purchase of property. What about public servants? Their professional stability is a real asset to acquire a main residence at the best price, and they can do so by competing through the insurance delegation.
What is the difference between insurance delegation and group insurance?
For its insurance, which is compulsory for any financing of real estate carried out on credit, there are two possibilities: group contracts taken out with the lending establishment, and delegation of insurance which requires competition. The group contract that most often accompanies home loans is based on the logic of risk pooling between clients of the lending organization.
The guarantees and prices are the same for everyone! This type of contract is quick to set up and only partially takes into account the situation of the borrower. Conversely, since 2010, the insurance delegation has allowed competition to be played by soliciting proposals from third-party organizations. An effort that can prove to pay off, all the more for a civil servant.
The insurance delegation, tailor-made for civil servants
Being a civil servant means being able to justify a strong argument against organizations offering insurance by delegation: job stability and therefore income, greatly reducing risks. It would therefore be a shame not to fully exploit this advantage through group insurance which classifies borrowers into several major categories, without taking into account the specifics of each particular case, unlike delegation of insurance. It is therefore better to give full play to competition in the context of insurance delegation : the savings can be significant.
Take the example of a 35-year-old teacher covering his property purchase with a loan of $ 125,000 in addition to a personal contribution of $ 25,000: the savings possible by reducing the rate of his borrower insurance by 0.5 point is around 4,500 $ over 20 years! And if there is no time to complete the procedures and push the door of the insurers, it is possible to use an online loan insurance comparator.