What is civil servant creditor insurance?

What is civil servant creditor insurance?
Civil servants have a very interesting profile for taking out a loan from banking institutions because of their professional status. Here is everything you need to know about government creditor insurance.

At first glance, therefore, they should be able to benefit from credit more easily, and from the confidence of their bank in the repayment of the loaned capital. However, things may not go as planned.

So, if the borrower is having difficulty repaying its debt regardless of the cause, how could the banking institution recover its credit in order to keep operating?

It is to deal with this unforeseen event that the latter now require from each official who wishes to contact a loan, official loan insurance.

This provision provides a guarantee to the lender that it will be repaid, regardless of what happens.

However, there are several types of government creditor insurance, as well as the insurers that you might purchase.
It is therefore important that you are informed about what civil servant credit insurance is so that your choice of the one that is most suitable for you is easier and more efficient. We tell you everything in the rest of our article.

civil servant borrower insurance

Civil servant loan insurance: what is it?
It is not enforced by any law. But it is essential for any official who wishes to obtain a loan from a bank.

Indeed, it allows banking institutions to recover their loan when the borrower is no longer able to pay his due due to illness, death or other restrictive situations.

It is subscribed when signing a loan, and it covers both civil servants (health workers, security officers, teachers, etc.) and those in the private sector.
Usually, banks offer borrowers insurance to cover their loan. But current legislative provisions allow policyholders to choose the insurer that is right for them, and even to change.

What guarantees does borrower insurance offer civil servants?
Civil servant borrower insurance offers systematic guarantees, but also optional guarantees for civil servants in the same way as individuals in the private sector.

Death guarantee
It is systematically included in a borrower insurance contract for civil servants. It allows the insurer to take charge of the amount remaining to be paid by the borrower in the event that the latter dies.

It offers the benefit of the deceased's beneficiaries to dispense with the payment of the amount due and therefore still be able to own any real estate acquired with the credit contacted.

The Total and Irreversible Loss of Autonomy (PTIA) guarantee
It is systematically associated with the previous one and becomes applicable when the borrower becomes absolutely and permanently incapacitated, preventing him from practicing an income-generating activity.

From a functional independence point of view, the insured must have recourse to the help of a third party in order to be able to carry out his day-to-day activities.
Like the death guarantee, the insurer covers all the amount owed by the official.

Permanent and Total Disability Guarantee (IPT)
The latter only applies when the insured is disabled, with medical examinations attesting to it as such, and a disability rate exceeding 2/3. The insurer is responsible for settling the monthly payments until the term.

Apart from these systematic guarantees listed above, there are guarantees which are optional to which one could subscribe in the civil servant borrower insurance contract.
Partial Permanent Disability cover (PPI)
It is only applicable when the insured is disabled, medically certified, with a dependency rate ranging from 1/3 to 2/3. Not all monthly payments are covered in this case. The percentage will be discussed with the insurer.

The loss of employment guarantee
It is applicable in the event of dismissal. However, certain trades are not concerned, in particular craftsmen, traders, employees of a certain age (the age limit varies from one insurer to another), and those who have resigned.