Borrower insurance: sick customers will win big with the removal of the medical questionnaire

Changing loan insurance at any time will soon be possible, in accordance with the agreement obtained by the Joint Joint Committee on the law for fairer, simpler and more transparent access to the borrower insurance market, on February 3. At the same time, the deputies and senators decided, as the parliamentarians of the Luxembourg Palace intended, to remove the medical questionnaire for loans of less than 200,000 euros and customers under 60 years old. These floor thresholds, which could even be raised in the future, become eligible for the measure of half of the borrowers.

Far from being anecdotal, the formality of the medical questionnaire allows insurers to understand the risk that a client represents. The latter is therefore forced to declare the existence of a serious illness – diabetes, sclerosis, cancer – under penalty of not being compensated the day he is no longer able to repay his mortgage. To carry this risk, the insurers apply on the other hand very heavy surcharges. From the promulgation of the bill in the Official Journal, the abolition of the questionnaire will therefore exempt the profiles of the sickest borrowers from the additional costs of contributions which they are paying for the time being. According to data from the courtier Reassure me, cancers represent almost a quarter (22%) of the pathologies declared by borrowers. Mental illnesses (16.4%), respiratory (10.7%) and heart (10.3%) follow.

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But how much are the gains for these households? According to the courtier’s estimates, nearly 137,000 customers are directly affected by the reform, ie half of the people paying premiums. If in half of the cases, the additional premium varies between 0 and 50% compared to a person in good health, more than a quarter of the patients pay an additional cost of between 50 and 100%, and for 21% of them, it exceeds 100%! The scheduled end of the questionnaire could thus generate an overall gain of 471 million euros for those concerned.

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25,000 euros in additional premiums for multiple sclerosis

Evidenced by the examples of real cases provided by Reassure me. Madame X, 47, suffers from a thyroid disease. By borrowing 97,000 euros over 20 years, the insurer who accepted his file imposed a monthly premium of more than 18 euros, or 4,365 euros on the entire loan. In the coming weeks, these are therefore as many euros as she will not have to pay for the acquisition of her property.

And it’s not the biggest gain. Mr. X, a 37-year-old smoker and victim of moderate diabetes, can expect a gain of 8,600 euros over 20 years – the amount of the additional premium applied to him – if he borrows 155,000 euros. The most emblematic case, however, remains that of Mademoiselle X. The 31-year-old young woman wants to borrow 193,000 euros, still over 20 years. His multiple sclerosis is however a major obstacle since it constitutes an additional insurance cost of more than 25,000 euros, or 104 euros per month. This will now be chosen bygone.

Insurance can block a credit report

More than a necessary saving, the end of the medical questionnaire could even allow the most fragile to even access credit. Too expensive insurance can indeed cause the household to exceed the maximum debt ratio imposed by Bercy. Since January 1, 2022, with some exceptions, a household cannot avoid more than 35% of its net income before tax when repaying a loan, a ceiling also including loan insurance. Putting an end to the surcharges will therefore make it possible to lower the debt ratio and thus pass a blocked file.

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