The special tax on insurance agreements now extends to all guarantees of loan insurance contracts. This is why the bill of the insured will rise. To achieve savings, despite this widespread increase in the rate of loan insurance, it is in the interest of borrowers to use the delegation of insurance, using a broker specializing in mortgage insurance. Read more at yes-race.net
A risk of death that costs more in 2019
Since 1 January 2019, the loan insurance policies subscribed by the borrowers have been fully covered by the 9% special tax on insurance agreements (TSCA). Previously, the death guarantee was exempt from this tax, applied to the other guarantees of a borrower insurance policy. But, with the 2019 Finance Act, this exemption was abolished by the government.
In cases where insurance companies, which are directly impacted by the extension of this tax, decide to pass on the increase in the risk of death rate on all their loan insurance contracts, the increase in contributions insurance would then represent an average of € 44 more per year for insured persons on the total amount of their loan insurance contract, ie € 3.65 on average per month.
Opt for the delegation to offset the increase in contributions
With this increase in loan insurance contracts, the government wants to find a balance in the financial losses caused by the Pact Act (action plan for the growth and transformation of businesses), supporting innovative companies as well as those in the process of phase of growth, and thereby helping to reduce the number of VSEs/SMEs that can participate in the financing of Action Housing (formerly 1% housing).
Although this measure is applicable to any new insurance contract, it does not apply to contracts in progress. Also, many brokers fear that banks take this opportunity for them to dissuade their customers to take out another insurance borrower than the group insurance they offer.
It is worth remembering that since 2018, this has made it easier for banks and insurance companies to market home loan insurance contracts. It is indeed possible to make a change of insurance during the first 12 months of subscription of the contract, but also annually at the time of the anniversary date. Note that in order to change the borrower insurance offer, the new contract chosen must have at least equivalent guarantees.
Insured persons who think that their contributions are too high have any interest in choosing a delegation of insurance, in order to offset the increase in contributions. To do this, we recommend using a broker specializing in mortgage insurance.
Similar loan insurance items:
- Tax on new contracts insurance loan: discount.
- Loan insurance tax: increase in the cost of.
- In 2019, the cost of borrower insurance exceeds.
- Offset the increase in the cost of the guarantee.
- Borrow after 60 years: is it complicated?
- Changes in real estate in 2019
- Borrower insurance: the FFA informs about the figures of.
- Loan insurance costs more and more expensive
- Cities where the housing tax is the most expensive