What is professional loan insurance?

Do you want to take out a business loan, but do not yet know what business loan insurance is? You are in the right place ! Our article gives you the essential information to know.

Business loan insurance in a nutshell

Professionals such as the artisan trader, the business manager or those in liberal profession, have recourse to business loan to finance projects such as purchase of business and develop their professional activity.

Business loans are risky and require you to take out insurance such as borrower insurance which allows for a reduction in tax on your business and lightens the tax base, which can translate into a profit on the amount of interest.

This borrower insurance protection covers many risks with death and disability insurance (accident, illness, incapacity for work) and guarantees repayment if necessary.

What are the most common guarantees?

Among the most used guarantees, we find:

  • The warranty death
  • The warranty accidental death
  • The warranty total and irreversible loss of autonomy or disability

How to take out professional loan insurance?

You can now use professional loan insurance simulators online to get an idea of ​​insurance offers. It is a process in general free, fast and easy to use. Comparators can help you find the one that will suit you the most and that will be adapted to your needs and profile.

Different criteria can influence your choice:

  • Age
  • Health status
  • The amount borrowed
  • The profession exercised
  • The activities carried out

Finding the right insurance can sometimes be complicated, which is why you can use a broker who will bring you his expertise and one personalized support in order to allow you to make a request and negotiate the best conditions.

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Pay attention to the application of the rate: is it applied to the borrowed capital or to the outstanding capital?

What does the professional credit insurance delegation offer?

The insurance delegation gives you the right to choose an insurance different from the group contract offered by your bank. You can then contact an institution other than the one that granted the business loan.

The lender takes into account the initial capital for the calculation of interest and does not take into account the decrease in capital. Unlike a lender, specialized insurers include declining interest based on the outstanding capital.

It is therefore more advantageous to opt for the second solution.

Is it possible to change professional loan insurance?

Yes, it is quite possible to change professional loan insurance for different reasons (reduction in monthly payments, more advantageous offer …)

If you have a contract, you can terminate the contract two months before the next anniversary date of your loan. It is important to anticipate and plan your other contract to benefit from coverage over the transfer period.

The Lagarde law indicates that you must present a proposal that presents the same guarantees, otherwise the bank could reject your request.

What about professional real estate loan insurance?

The exclusions of guarantees present in your contract play a very important role and it is necessary to read them all because in certain situations considered too risky you are not covered. Professional real estate loan insurance will be applied only for cases directly related to real estate and will exclude, for example, cases of exercising professional activity.

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You now know everything about business loan insurance. All of our CrediPro teams wish you good success in the creation of your company, and supports you in all the steps of your financial projects.