Assurance vie - help please

[lausha]

Hi

I'm buying a place in Languedoc and have been offered a mortgage with Credit Agricole at a very good rate.  And apparently by law I need to have some kind of insurance to cover the payments.

The bank have included a monthly insurance payment within the quote, but if British lenders are anything to go by, I'm presuming this is where they will be making their money and the chances are I will find a cheaper identical insurance product elsewhere if I shop around.

To those who may be able to help, my question(s) are:

1.  Am I being too cynical?  Are French banks in fact decent, honest folk who just want everyone to be happy and aren't going to charge over the odds for insurance?

2. Can anyone recommend an insurer/insurance policy to go for?  (And if so, do they have a contact number, and preferably know of someone in the office who can speak a bit of English as my French is not up to discussing complex financial matters)?

3. What is this form of insurance called, as the 2 companies I have managed to call (Axa and Generali) have sounded like they don't know what I'm talking about.

Any and all advice would be most gratefully received.

Laura

[LesLauriers]

Check with CA, you may find that you have to take their cover, if you want their loan!

[lausha]

Hi

Thanks for your reply Leslauriers.  According to the guy at CA if I can find something cheaper he says I can take it.

Does that mean though that it's standard practice to take the insurance that comes with the mortgage?  In the UK banks and building societies are always trying to throw in contents or buildings cover and usually it's much more expensive than anything you'd find if you bought it separately.  I was just presuming the same thing applied in France.

Laura

[LesLauriers]

In that case shop around with some of the assurance companies, however be aware that, the term "Assurance Vie" could refer to a savings policy, rather than straight life cover - if that is what is required.

[makeiteasy]

Hi lausha,

yes if CA agrees that you could get another cheaper insurance somewhere else, try it.

In fact it's not an "assurance vie" but an "assurance décès, invalidité" that you are looking for(the first one is a saving account and the other one is an insurance for death and disability and be aware that you WILL NEVER GET BACK YOUR MONEY that you pay in your installment).

Comparing insurance is a good point but when you say that you have a very good rate have you compare with french banks or british one?Have you check how much fees they ask you to pay and at least what is the T.E.G which include all that and at least could make a huge variation?

If you are lost, don't hesitate to come back to me regarding that i'm used to deal with all those things as it's my job!!!Look at my website!

Céline

 

 

[Lori]

We took our loan out with Credit Agricole. The rate was good and we too were told the "life/death" insurance policy could be taken out elsewhere, but my husband had to go through a plethora of medical exams to get the insurance. He was 44 at the time. He is the picture of health, but in one of the blood analysation tests, an certain enzyme showed two points above the normal range and this "insurance" became ridiculous. However, I must say that getting it elsewhere would have delayed even further the closing of our loan which was already delayed by 3 months due to the seller not arranging access to the house via his neighbor's chemin. Long story.

Long and short of it, it is what we in the U.S. refer to as mortgage life insurance and it is a RIP-OFF, but a requirement here.

Good luck..and I would shop around too if you have the time and good health reports to go with it.

Best of luck to you,

Lori

[lausha]

Thanks Celine and Lori.  Wow - didn't know I had to undergo an examination for it!  In which case I might as well just stick with CA as they haven't mentioned anything about a medical!

Laura

[Nick Trollope]

[quote]We took our loan out with Credit Agricole. The rate was good and we too were told the "life/death" insurance policy could be taken out elsewhere, but my husband had to go through a plethora of medica...[/quote]

That's interesting. I am slightly (only slightly!) older than your OH, but CA did not expect me to undergo a medical for our mortgage - we both filled in a questionaire, however. They did tell us that the mortgage was dependent on us taking their life cover, but it was also 50% cheaper than the next best quote I got, as was their household cover. So much variation in what the banks say/do, eh?

 

[Baz]

I would assume that French Insurance companies probably work on the same Basis as UK companies. Both Medical Examinations and Doctors Medical report are dependent on a number of factors. Namely Age, Health and the sum assured, the limits will vary according to the company providing the cover. Upto the company's agreed level of cover  which will also be age dependent, then provided the health questions answered on the application form are satisfactory the policy will be issued without any medical requirements. With any previous adverse medical history or above the company limits then either or both a medical examination and doctors report will be required. One last point, if any non disclosure of medical details is withheld then the policy will become void, this is usually discovered in the event of a claim.

Baz

[Lori]

Baz: Agree 100%. We were taking out a 100% loan, therefore med exam was required. I agree too that it can vary from bank to bank, region to region and client to client. It is quite a change from what we are used to.

L

[lausha]

Thanks everyone for your hlep.  I've found an English/French insurance company and they are checking the situation out for me. If they have any joy in finding a cheaper and acceptable alternative I shall post here and let you know.