If the rates of a mortgage vary mainly according to the level of income, it is different for the insurance of the home loan. The professions most exposed to risks are largely penalized, as demonstrated by a recent study by Capital.
Professions at risk are entitled to a bonus
Income partly counts, but it is the level of risk represented by the acquisition candidate that is appreciated by the insurer to possibly impose a premium which will increase the cost of credit. And it is obvious that people working in professions presenting a higher risk of accident are identified and penalized by insurance establishments, in particular within the framework of group contracts. Capital magazine wanted to make sure of this and has gathered eloquent figures for this.
The military not spared
Let us take the example of a soldier, a typical case of an exposed profession. In ten years, 125 soldiers have died for France during operations abroad, and this figure does not include the fifty accidental deaths – especially in exercise – in this period of time.
According to Capital, a soldier taking out a $ 110,000 home loan over 20 years will be charged a loan insurance rate of 0.61%, which brings the cost of insurance ($ 13,420) almost to same level as the cost of credit ($ 14,379). However, by competing with an insurance delegation, it can greatly reduce the burden of loan insurance.
Still according to Capital, the military can then hope to benefit from 0.25% borrower insurance for a credit of $ 250,000 over 20 years. Consequence: the cost of insurance is contained at $ 12,500, a level significantly lower than the cost of credit ($ 32,680). Morality: the military has every interest in turning to the insurance delegation to lower the cost of his loan insurance!
Airline pilots can cut cost in half
And Capital’s investigation reveals the same pattern for an airline pilot. Admittedly, the mortality of the profession is much lower than that of the military, but the risk of accident exists and insurers make it pay. For a group contract, this results in a loan insurance rate of 0.45%, compared to 0.21% for a delegation of insurance. The mortgage of $ 200,000 over 20 years will cost significantly less in the second case: more than $ 9,500 difference between the $ 17,952 of interest with the group contract, against $ 8,368 by bringing competition!