Securing a home loan: What is the death, disability, incapacity guarantee?

Verified 02 May 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Guarantees for death, total and irreversible loss of autonomy, permanent disability, temporary incapacity for work, make up the mortgage loan borrower insurance. This insurance covers the reimbursement of the mortgage in case of occurrence of one of these risks. The insurance contract shall lay down the conditions for such reimbursement. We present you with the information you need to know.

The death guarantee is always present in a borrower insurance contract.

It occurs when your death occurs before a certain age limit.

The insurance pays the charity that granted you the loan the principal outstanding on the day of your death, according to the insured amount.

The insurance contract may provide for:

One waiting period
Of Warranty Disclaimers, i.e. situations where compensation is excluded. For example, in the case of a dangerous sport...

FYI

The risk of suicide is covered only from the 2nd^e the year of the insurance contract.

But in the case of a contract group insurance, the risk of suicide is covered from the moment the contract is signed, provided that the loan is used to obtain your principal residence and is at least €120,000.

The guarantee total or irreversible loss of autonomy (PTIA) intervenes when you are:

In the total and definitive impossibility of having any professional activity
And in the absolute and presumed definitive obligation to use the help of a third person to wash, dress, feed and move.

According to your insurance policy:

The risk of PTIA is covered up to a certain age limit, or throughout the duration of the loan.
Often, to be compensated by insurance, you also need to receive a social security disability pension.
The insurance is responsible for repaying the monthly installments of your loan, depending on the amount insured, or depending on your loss of income.

Total permanent disability (TPI)

The guarantee total permanent invalidity (TPI) concerns incompetence permanent to pursue a professional activity, following an accident or illness, and after consolidation of your health.

The insurance contract shall fix the rate at which unfitness shall be considered as total.

The compensation comes after a doctor, designated by the insurer, has assessed your disability rate, according to the medical scale mentioned in the insurance contract.

According to your insurance policy:

The IPT guarantee is valid when you are unable to carry out any professional activity, or the professional activity carried out at the time of the occurrence of the disease or accident
The guarantee only applies up to a certain age limit
The amount of compensation paid depends on your loss of income, or the monthly payment of your loan
The allowance shall be paid from 1^er day of IPTS, or after a period of frankness
Compensation may or may not be excluded in the case of illness due to alcohol or drugs, dangerous sports, intentional injuries...

Partial permanent disability (PPI)

The guarantee partial permanent invalidity (PPI) concerns incompetence permanent re-engage in your professional activity or any professional activity, following an accident or illness, and after consolidation of your health.

The insurance contract shall fix the rate at which the invalidity is to be regarded as partial.

The compensation comes after a doctor, designated by the insurer, has assessed your disability rate, according to the medical scale mentioned in the insurance contract.

FYI

IPP warranty cannot be subscribed only in addition to an IPT guarantee, and is not offered by all insurance contracts.

According to the insurance contract:

The IPP guarantee is valid when you are unable to carry out any professional activity, or only your professional activity
The guarantee only applies up to a certain age limit
The amount of compensation paid depends on your loss of income, or the monthly payment of your loan
The allowance shall be paid from 1^er day of permanent invalidity, or after a period of frankness
Compensation may or may not be excluded in the case of illness due to alcohol or drugs, dangerous sports, hazardous occupations, intentional injuries...

The guarantee temporary incapacity for work concerns incompetence temporary to engage in an occupational activity, following an accident or disease giving rise to a work stoppage. Disability must be total.

Depending on your contract, this may include inability to perform:

Either any professional activity
The activity carried out at the time of the accident or illness

Please note

In the event of resumption (even partial) of activity, insurance coverage shall cease, unless a clause of the contract provides for coverage in the case of a therapeutic half-time.

In general, the insurance contract provides for an age limit, and a frankness during which no compensation is paid to you.

Warning

Often, the contract includes exclusions (for example, willful injury to the insured, hazardous occupation, dangerous sports, illness due to alcohol or narcotics).

The insurance covers the repayment of the monthly loan payments under the conditions specified in the contract (depending on the insured amount, or according to the loss of income).