By taking out loan insurance, you will benefit from several guarantees. Among them, it is possible to have the professional disability guarantee. But what does it consist of and in what cases will it activate? We take stock with you.
What is a professional disability guarantee?
The occupational disability guarantee is a guarantee available in loan insurance contracts. It covers the repayment of the capital borrowed if the insured is no longer able to exercise his trade.
This is an optional guarantee : that is to say that it is not included in the basic borrower insurance contracts and that the insured must request it from his insurer so that it is included in his contract.
Borrower insurance or pension disability?
Be careful not to confuse the professional disability guarantee of a loan insurance with that of a provident contract. Even if they use the same name, they do not have the same goal.
The professional invalidity guarantee of a provident contract makes it possible to receive an annuity in the event of temporary or permanent invalidity but it does not in any case reimburse a mortgage. In addition, the scales used to determine the amount of the annuity (functional scale and professional scale) are different from those used by borrower insurance.
Who is the professional invalidity guarantee intended for?
The professional invalidity guarantee is not a guarantee available to all insured persons. Indeed, it is only intended for the medical, paramedical and veterinary professions. Specifically, it concerns the following professions:
- Doctors
- surgeons
- Pharmacists
- dental surgeons
- Internal
- Midwives
- Veterinarians
- Physiotherapists
What should be remembered is that the professional disability guarantee is there to meet the specific needs of these professions by taking into account the additional risks to which borrowers are exposed.
Thanks to this guarantee, policyholders have a contract that is even more suited to their situation and their needs.
What is the difference with the total permanent disability insurance?
The professional invalidity guarantee (also called IP Pro) should not be confused with the total permanent invalidity guarantee . Indeed, the latter is mandatory in all borrower insurance contracts while the professional disability guarantee is optional and only concerns very specific trades.
What guarantees are offered by loan insurance contracts?
Remember that a borrower insurance contract must have certain so-called mandatory guarantees. These are the following guarantees:
- The death guarantee
- Total and irreversible loss of autonomy (PTIA) guarantee
- The total permanent disability guarantee (IPT)
- The partial permanent disability guarantee (IPP)
- The temporary interruption of work guarantee (ITT)
To these mandatory guarantees, it is possible to add optional guarantees that the insured can take out according to his situation and his needs:
- Professional invalidity guarantee (IP Pro)
- Job loss and unemployment insurance
How is occupational disability determined?
After an accident or an illness that prevents him from exercising his professional activity, an insured person will receive a professional disability rate . The scale of this rate is relatively complex and can change depending on the profession of the borrower but also on the insurance company.
For the professional invalidity guarantee to be activated, the insured must be unable to exercise his profession permanently and definitively.
What is the difference between disability and occupational disease?
It is not always easy to make the difference between the notions of disability and occupational disease . To simplify, let’s say that disability can occur after an illness or an accident in everyday life. An occupational disease, on the other hand, results from prolonged exposure to a hazard or to a disease contracted in the workplace.
What happens when the occupational disability guarantee is activated?
Are you no longer able to exercise your activity as a surgeon or veterinarian? When it is recognized that an insured person can no longer carry out their job permanently and definitively, the professional invalidity guarantee comes into play. The degree of invalidity must be at least 66% for the guarantee to be triggered, but this rate may vary by insurer.
As a result, all of the remaining capital of the current mortgage will then be reimbursed by the borrower insurance.
Incapacity or invalidity: what does it mean?
In everyday life, these two words are sometimes used incorrectly to mean the same thing. However, the two terms should not be confused. The difference is quite simple to understand: disability is a permanent and irreversible condition while incapacity is a temporary condition .
How to find the loan insurance adapted to your needs?
Have you taken out borrower insurance with your bank ? Note that with the delegation of insurance, you have the possibility of contracting an offer with another insurer provided that the guarantees offered are the same as those required by your bank.
In addition, thanks to the Lemoine Law , each borrower now has the possibility of changing loan insurance very easily and at any time. You therefore have no excuse not to compare the offers of different insurers and find a more protective contract at a better price.
