The duration of the unemployment insurance contract for a loan
Unemployment insurance or loss of employment contracts are generally subscribed for a period of one year, then renewable by tacit agreement.
Contract insurance loan real estate garnatie unemployment
From the moment the unemployment insurance or employment loss insurance contract is automatically renewed (the initial period has thus elapsed), the insured may request the termination of his unemployment insurance or loss of employment insurance contract (registered letter with acknowledgment of receipt to the insurer at least one month before the renewal date) or a reorganization of his contract.
The unemployment insurance or loss of employment insurance contract ends automatically:
- at the end of the mortgage,
- during the early repayment of this credit,
- upon retirement or early retirement of the insured,
- when the insured reaches a specified age specified by the contract.
Why buy unemployment insurance?
In view of an uncertain economic period, to guarantee a loan, banks and credit organizations are increasingly offering unemployment insurance in addition to death and disability insurance. In the event of loss of employment, this insurance covers the repayment of all or part of the amount of the monthly payments as part of your mortgage. The duration of care , the system of compensation and the cost of it can vary greatly from one insurer to another.
Buying unemployment insurance allows you to guarantee the repayment of your home loan in the event of a period of unemployment. No one is immune from dismissal, which is why it may be wise to join to avoid any difficulty in repayment. This is a real protection for you but also for your loved ones. Aside from being retired or employed in the public service, the job loss guarantee is strongly recommended.
How does unemployment insurance work?
To be able to take out this insurance, you have to work on a permanent contract (Contract with Indefinite Duration), to justify a seniority in your company and to be entitled to receive the unemployment benefits of the Asebop (or assimilated organization) in case of job loss. Once the contract is signed, it is usually effective only after one year. After this period has elapsed, in case of unemployment, unemployment insurance will partially reimburse the monthly payments of your mortgage during a period specified in the contract. This support is, however, subject to a waiting period called the grace period: period beginning with the first payment of Asebop allowances and ending 90 days to 1 year later.