In terms of loan insurance, the waiting period, known as the grace period, refers to a period that must be waited until the term for the insurer to pay compensation following the declaration of a claim by the insured. This period begins on the date of subscription of the loan insurance contract.

More on Waiting time

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Loan insurance usually includes a waiting period, known as the grace period, but also a waiting period. It should not be confused.

The guarantees of a loan insurance contract do not necessarily take effect immediately. Indeed, there are waiting periods such as the grace periods, as well as waiting periods. We explain the difference.

An exemption period means a period running from the declaration of a claim and after which the guarantee applies: the indemnity is paid by the insurer once this period has elapsed. Most loan insurance contracts provide, with the ITT guarantee, a so-called “grace period” waiting period. This means that coverage can only apply for a work stoppage after a certain period of time. A short work stoppage does not allow compensation.

The duration of a franchise period is in many 90-day borrower insurance contracts. However, some contracts propose to modulate this waiting period.

The waiting period is a period following the subscription of the insurance contract and during which the guarantees do not apply. Thus, if a risk occurs during this period and although the insured pays contributions, he can not receive any compensation.

There are deficiencies for the ITT, IPT and IPP guarantees. And they generally only apply in the event of incapacity for work or disability due to illness only.

The duration of the waiting period may vary depending on the contract. It is most often between 6 and 12 months from the subscription of the contract.

The word of the broker

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Before taking out a loan insurance contract, remember to check the waiting period .