Several guarantees protect you against different situations that can lead to a temporary or permanent stoppage of your loan repayment. Whether it is death, total disability or temporary incapacity for work, borrower insurance is equipped to defend you as well as possible. But what happens in the case where loan insurance and sick leave are linked?
Home loan insurance is coverage intended to help a borrower protect themselves against possible life incidents throughout the mortgage loan repayment process. In this way, the insured person protects his direct entourage in the event of his inability to continue paying his loan, while, at the same time, the financial institution covers itself against a stoppage of cash inflow of from his client.
Mortgage loan insurance and sick leave: the different covers
A sick leave is covered by some borrower insurance guarantees:
- The Total and Irreversible Loss of Autonomy (PTIA) guarantee , which covers the impossibility of carrying out any remunerative activity and the need for the insured to have the assistance of a third person to carry out the tasks of everyday life. .
- The Permanent and Total Invalidity guarantee (IPT) , which definitively prevents any professional activity, with a degree of invalidity greater than or equal to 66%.
- The Permanent and Partial Invalidity guarantee (IPP) , which partially prevents the exercise of a professional activity, with a degree of invalidity between 33 and 66%.
- The guarantee of Temporary Incapacity for Work (ITT) , which applies during a temporary work stoppage.
What is an ITT guarantee for a mortgage loan?
As part of a home loan, borrower insurance consists of several guarantees, including that for ITT (temporary incapacity for work). Indispensable and required by all banks to finalize the granting of a mortgage, the ITT guarantee intervenes when the borrower is no longer able to carry out his professional activity due to illness or accident. . The ITT guarantee then supplements it for a given period, so that the mortgage is properly repaid, until the borrower can resume his activity.
ITT real estate credit insurance rather covers periods of long illness, because its operation is linked to certain grace periods. For self-employed workers and the liberal professions, this waiting period is between 15 and 60 days. For employees, who first benefit from a provident scheme, the period is longer. It is usually 180 days.
The ITT guarantee is a mortgage loan insurance. Without being mandatory, the ITT guarantee is, in practice, almost always required by banks when taking out a mortgage. It can operate according to two methods of compensation:
- A fixed indemnity whose amount is agreed upstream with the insurance.
- An indemnity whose amount varies according to the loss of salary.
Also note that, like any insurance, the ITT guarantee has some exclusions. As such, sick leave for psychological conditions, discovertebral conditions, suicide attempts, accidents related to the practice of a risky sport or an omission in the medical questionnaire are not covered under the ITT guarantee. .
What should be studied when taking care of a sick leave?
Of course, in order for your sick leave to be covered, you must have taken out the ITT guarantee, and not exclusively the Death and PTIA guarantees, which are compulsory.
Borrower insurance deductible
The deductible is the period, in days, during which the insured is not covered by his insurance, even if he is already on sick leave. The grace period, starting from the start of the work stoppage, is therefore very important to watch. It is generally 90 days, and varies from 30 to 180 days .
Home loan and work stoppage insurance: exclusions
The extent of your ITT coverage may be reduced by certain warranty exclusions , which will prevent the coverage of certain pathologies in particular. Even if each contract is different, it can then be:
- Back diseases (vertebral, radicular, disc diseases, etc.)
- Of schizophrenia
- Mood, personality and behavioral disorders
- eating disorders
- neurotic disorders
- anxiety disorders
- delusional disorders
Reimbursement of home loan insurance in the event of sick leave
Let’s see how your home loan insurance performs in the event of illness, in terms of reimbursement. Two operating modes can apply with regard to the ITT, IPT and IPP guarantees:
- The lump sum mode : the insurance thus reimburses you the monthly payments provided for, according to the quota stated in the contract.
- The indemnity mode : the mortgage loan insurance will simply compensate for your loss of income by paying you an indemnity. Thus, in the case of a loss of income of 60%, for example, the insurance will reimburse you the equivalent, minus the allowances from Social Security and other complementary bodies.
What should I send to my insurer?
A work stoppage must be announced to your insurance very quickly, and as soon as possible . Some documents will have to be sent in order to validate the declaration of sick leave with your home loan insurance :
- A medical certificate
- The ITT form provided by the insurer, signed by the attending physician
- The certificate of Social Security benefits, presenting the daily allowances received, if the borrower is insured
- The amortization table updated on the date of the work stoppage
After studying these documents, the insurance doctor will decide whether the insured will be granted a status of Temporary Incapacity for Work within the framework of his home loan insurance.