Temporary total work disability
Temporary Total Work Disability: the insurer covers installments during a period when the borrower can no longer work, after a waiting period. Terms, deductible, lump-sum or indemnity basis, vary widely between contracts. It is a major point of vigilance when comparing offers.
Key points
- Covers installments during total work stoppage after an initial waiting period.
- Two indemnification modes: lump-sum (fixed amount) or indemnity (actual income loss).
- Waiting periods typically range from 15 to 90 days; shorter periods mean higher premiums.
- The definition of 'work' (own occupation or any occupation) strongly shapes actual coverage breadth.
Frequently asked questions
What is the difference between lump-sum and indemnity modes for temporary disability cover?
Under the lump-sum mode, the insurer pays a fixed amount equal to the loan installment, regardless of the insured's actual income loss. Under the indemnity mode, the benefit is proportional to the documented income loss, which can penalize self-employed workers whose income fluctuates. The lump-sum mode is therefore generally more advantageous for the self-employed, tradespeople, and liberal professions.
Why is the ITT waiting period a key comparison criterion?
The waiting period determines how many days of work stoppage must pass before the insurer begins covering installments. A 90-day period means three months of repayments remain the insured's responsibility, which can be a significant sum. Reducing it to 15 or 30 days improves protection but raises the premium; the broker should help the client find the right balance based on their precautionary savings capacity.
What mistakes should be avoided when comparing temporary disability cover terms?
The first mistake is comparing only price without examining how the risk is defined: a cheaper policy with a restrictive definition (inability to perform any activity, even unpaid) may cover far less than a more expensive but better-defined contract. Specific exclusions must also be checked: back conditions, psychiatric illness, or pre-existing conditions are often excluded or covered with restrictions in group contracts.
In practice
A self-employed plumber takes out lump-sum temporary disability cover with a 30-day waiting period. Following a wrist fracture, they stop working for 8 weeks. The insurer covers 30 days of installments (one monthly payment of €900), covering most of the work stoppage period.
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