Insurance coverage share
The percentage of capital insured on each borrower's life; the quotas must add up to at least 100% of the loan. A couple can split 50/50, 100/100 for maximum cover, or weight it by income. It is a key trade-off between protection level and insurance cost.
Key points
- Percentage of the borrowed capital insured on each borrower's life; total must reach at least 100%.
- Can be split equally (50/50) or weighted according to each borrower's income.
- 100% cover on each co-borrower provides maximum protection but costs more.
- The bank may require a minimum share, often 100% in total across all co-borrowers.
Frequently asked questions
How should a couple choose the right coverage split?
The basic rule is to weight the shares according to each person's contribution to repayment: if one borrower generates 70% of household income, assigning them a higher share limits risk if they are affected by a claim. Where both incomes are essential to the repayment, 100/100 coverage is often recommended despite the higher cost. The broker should model both costed scenarios so the client can make an informed decision.
What happens in the event of death with a 50/50 split?
With a 50% share on each head, the death of one co-borrower triggers the insurer repaying half the outstanding balance. The survivor is then left carrying the other half alone, which can be a difficult burden if household income has significantly fallen. This exact scenario is why re-evaluating the split based on the couple's real financial situation is important.
What is the difference between the coverage share and the waiting period?
The coverage share designates the portion of capital insured on one person and determines how much the insurer repays on a claim. The waiting period, by contrast, is a deductible or standby period during which a claim does not trigger compensation, particularly for temporary disability. Both parameters affect protection but at different levels: the share defines the coverage ceiling, the waiting period governs when it activates.
In practice
A couple borrows €250,000. One is a salaried executive earning €4,500/month, the other self-employed at €2,000/month. The broker proposes a 70% share on the first and 30% on the second: should the executive die, €175,000 is repaid, leaving a reduced installment the spouse can manage.
Put it into practice with CourtImmo
See how CourtImmo software helps brokers on this topic:
Official sources
- Borrower insurance for a mortgage · Service-Public.gouv.fr
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr