Permanent disability cover (IPT/IPP)
Total or Partial Permanent Disability: cover that triggers when a disability rate, measured by scale, durably reduces the ability to work. Depending on the threshold reached, the insurer covers all or part of the installments. The scale definition strongly shapes how real the protection is.
Key points
- Total permanent disability: functional disability rate typically above 66%, full or partial installment coverage.
- Partial permanent disability: disability rate below the total threshold, partial indemnification proportional to rate.
- The assessment scale (functional or occupational) strongly influences the recognized rate.
- These covers activate after health stabilization, unlike temporary disability which is time-limited.
Frequently asked questions
How is the disability rate measured to trigger total or partial permanent disability cover?
The insurer's medical expert applies a scale, which can be purely functional (residual physical capacity) or occupational (ability to perform the insured's actual profession). An occupational scale is generally more favorable to the insured as it accounts for the impact on their ability to do their specific job. The type of scale is a contractual clause to check without fail when comparing policies.
What is the practical difference between total and partial permanent disability for a borrower?
With recognized total permanent disability, the insurer covers the entire installment (or repays the capital depending on the contract), providing full protection. With partial permanent disability, coverage is proportional and calculated from a formula linked to the rate: for example, a 40% rate may produce a benefit covering 40% or a fraction of the installment per the contract formula. The borrower therefore remains responsible for part of the repayment under partial disability.
Why do some contracts exclude psychiatric conditions from permanent disability cover?
Psychiatric or psychological conditions are regarded by some insurers as risks difficult to assess objectively, particularly in terms of permanence and disability rate. Bank group contracts often exclude them entirely or impose a specific waiting period, whereas individual delegation contracts may include them under conditions. This is a major differentiating factor the broker should highlight for clients in high-stress professions.
In practice
A 52-year-old sales manager undergoes a hip replacement leaving a 45% functional disability rate. Their partial permanent disability cover provides a benefit covering 45% of their €1,200 monthly installment, €540 per month, significantly easing their financial burden.
Official sources
- Borrower insurance: death, disability, incapacity guarantees · Service-Public.gouv.fr
- Borrower insurance for a mortgage · Service-Public.gouv.fr
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr