Over time, banks have adapted their credit offers to seniors. Today, you can borrow without age limit. Simply bypass the problem of insurance .
Insurance for older borrowers
Insurance is the only obstacle that can prevent a senior from borrowing. Indeed, from a certain age, loan insurance has two disadvantages:
- She is excessively expensive
- It has time limits.
Some delegation contracts offer sufficient limits, sometimes up to 85 years for death and disability cover, but the amount of insurance premiums for seniors remains dissuasive.
How to borrow when you are retired: see the complete file
It is quite possible to substitute another guarantee for the insurance. We present here three formulas that each have advantages and disadvantages.
Pledge of an asset
Placing an investment contract saves the guarantee fee. Pledge agreements are written by the bank and generally do not generate any fees. You can freely offer to bring a life insurance policy or a title account.
However, be aware that the risks that weigh on the financial markets encourage bankers to be very cautious. The bank will require the funds on which the deposits are made to be secure.
On the other hand, know that from the moment the capital will be pledged, you will no longer be able to freely manage your contract. You will not be allowed to make partial withdrawals or make arbitrations.
Read the file on the backing
Delegation of an existing pension contract
If you have already taken out pension guarantees, you can propose to the bank to delegate it. To do this, simply contact the organization that manages your contract and request a change of beneficiary clause. This formality is completely free and will put the lending organization as the beneficiary of the contract .
In addition, if the insured capital is greater than the amount of the loan, nothing prevents you from limiting the benefit of the contract to the borrowed capital. In fact, the wording of the clauses generally allows a sufficiently flexible arrangement to allow, in the event of death, the repayment of a portion of the death benefits to the credit institution and to “reserve” the balance to another chosen beneficiary.
Third party deposit
This is by far the solution the least satisfactory solution. However, if you have no other options, you will still be able to use a third party’s bond . However, the surety must provide all the guarantees of financial stability and have sufficient income to meet the monthly payments in case of implementation of its guarantee.