‘t have anything undermining the interest of the termination, possible for all the contracts from just a year ago.
You are about to take out a loan and ensure the loan or change the insurance borrower for a previous loan ? It is likely, in both cases, cost you more in 2018. At issue : an increase of taxation.
The insurance borrower was previously subject to the special tax of 9 % on insurance contracts (TSCA), with the exception of the portion of the rate covering the risk of death, exempt. But the finance law for 2019 has removed this exemption for contracts signed since the 1st of January. The key : an average increase in the annual cost of this insurance is 3.65 € per month, according to the government (if the insurers pass 100 % of the tax increase on the price). The measure aims to compensate for the losses that should be subject to Action Housing after the adoption of the law “Covenant”, which provides for a reduction in the number of companies required to participate in the construction effort (the “1% logement”).
Death, temporary disability and total work, permanent disability, affections of the mind, etc : the loan protection insurance provides cover against a number of risks. According to the credits, some safeguards are required by the bank, other optional. The guaranteed death is the one that weighs the heaviest in the monthly payments : it accounts for between half and two-thirds of the tariff, or even 100 % for borrowers sick.
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Opening up to competition in stages
This change raises concerns. “We are concerned in particular that the banks have used to scare their customers wishing to cancel their insurance of the borrower, they do so by telling them that if they change the contract, they will suffer from the new tax,” explains Astrid Cousin, the broker-dealer Magnolia.fr.
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For the past year, the borrowers may effect to terminate the insurance of their loan once a year, regardless of the age of the contract, if you can find an insurance that offers guarantees at least equivalent. This right (from the”amendment Bourquin”)is the culmination of a long process of “delinking” between the credit and the loan protection insurance, launched in 2010 to bring the price down building the competition on this market. Entered into force on 1 January 2018, it has been validated 11 days later by the constitutional Council.
savings vary according to the profiles
The rise of the taxation can call into question the financial interest of the change of insurance ? “No,” answered Jean-Sébastien Nénon, of Furets.com. Even if the insurers pass the full tax, it does not jeopardize the gain achieved by way of delegation. The profiles likely to achieve the greatest cost savings are the employees, whose loan is still running at least five years, who do not smoke, are in good health, and rather young.”
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The average increase of 44 € per year, calculated by the government covers all types of contracts, banking, or and not. “In fact, says Astrid Cousin, the impact will often be less. Imagine, for example, a classic profile, taking 35 years to 200 000 € over 20 years to buy his house. In delegation, he will find an insurance rate of about 0.10 per cent. With a guaranteed death constituting two-thirds of the tariff, the tax rise will mean for him 1 € per month.”
In practice
The only way to know if change of insurance would be a good financial matter in your case, despite the increase of taxation, is to compare offers. Many internet sites allow you to do it in just a few clicks. Attention, do not look at the rates, be sure to read the small lines, to compare the benefits, exclusions and deductibles, the type of payments (fixed or variable), etc.
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The cancellation is effected at least two months prior to the maturity date of the contract,” says the law. As the majority of the contracts do not stipulate to the anniversary date, the banks have committed last November to all take into account the same maturity, at the latest, from the second half of 2019 : the signing of the loan offer. In the meantime, each indicates on its website the date used (signing of the loan offer, insurance, effective date of the insurance, etc).
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You have started to approach the end of 2018 and have received an offer before the increase of taxation ? “Some insurers believe that these deals are null and void since January 1, while others consider that they continue to validate a certain period of time,” says Cécile Roüault of the Vine, broker Reassurez-moi.fr.
