Loan insurance: death, total and permanent disability, temporary total disability, permanent partial disability, and permanent partial disability explained

These five acronyms represent five different situations: death, total and irreversible loss of autonomy (PTIA), total permanent disability (IPT), partial permanent disability (IPP), and temporary incapacity for work (ITT). The lender sets the minimum guarantees required. The exact definition of each acronym, the age limit, exclusions, and how disability is measured are specified in the contract, not in a single text applicable to all. Therefore, the same acronym may cover different situations from one contract to another.

This page explains each guarantee and lists what you should read in the contract before signing. It does not cover rates, premiums, or the procedure for changing loan insurance: a dedicated blog post addresses the Lemoine Law.

What the lender sets

The lending institution sets the minimum guarantees, for example, death and disability. It may require borrower's insurance. The Service-Public fact sheet lists two sets of guarantees: "death and total and irreversible loss of autonomy," and "permanent disability (total or partial) and temporary incapacity for work (total or partial).".

You can choose to contact an insurer other than the lender's.

Another important concept to understand is the portion of the loan that is insured. The information sheet describes this as the amount to which the loan must be insured, either 100% or a portion thereof.

The five guarantees in one table

The death

The death benefit applies when death occurs before a specified age limit in the contract. The insurance company pays the lender the outstanding loan balance on the date of death, according to the insured amount.

The information sheet presents assurance-vie as protection for your loved ones.

Suicide. It is only covered from the second year of the insurance contract. In group insurance, death by suicide is covered from the signing of the contract, for an amount that cannot be less than €120,000, provided that the loan finances your primary residence.

Exclusions. The contract may exclude certain causes of death. The information sheet gives an example: participation in a dangerous sport. The contract may also include a waiting period. The excluded causes and this waiting period are specified in the contract.

Total and irreversible loss of autonomy (PTIA)

According to the Service-Public fact sheet, PTIA requires two conditions to be met: the total and permanent impossibility of having any professional activity, and the absolute, presumed permanent obligation to have recourse to the help of another person to wash, dress, move and eat.

The information sheet indicates that the contract covers this risk up to a certain age, or for the entire duration of the loan. The amount of compensation depends on the loss of income or the monthly payment.

The contract may require, for the PTIA (Permanent Total Incapacity for Work) coverage, that you receive a disability pension from Social Security. This condition is verified in the contract.

Total permanent disability (TPD) and partial permanent disability (PPD)

The IPT This concerns permanent inability to resume your professional activity or any professional activity. The contract specifies which of the two applies. The degree of disability is assessed by a doctor appointed by the insurer, according to the medical scale mentioned in the contract.

The IPP can only be purchased in addition to an IPT guarantee.

For IPT as for IPP, compensation is, or is not, excluded depending on the contract in the event of illness due to the consumption of alcohol or drugs.

Temporary incapacity for work (TIW)

Temporary incapacity for work (ITT) refers to the temporary inability to perform a professional activity. Depending on the contract, this may include any professional activity or the activity carried out at the time of the accident or the onset of the illness.

The information sheet on coverage specifies that the disability must be total. However, the information sheet on obtaining the contract lists temporary disability, "total or partial," among the coverages: check the contract to see what is covered.

If you resume professional activity, even part-time, your insurance will cease to cover you, unless the contract includes a clause regarding therapeutic part-time work. The contract generally specifies an age limit and contains exclusions.

For temporary total disability (TTD), the information sheet describes the deductible as a period during which no compensation is paid. The glossary in the information sheet defines the deductible, in general terms, as the amount that remains the responsibility of the insured after a claim and that the insurer does not reimburse. Ask your policy what deductible it stipulates for TTD.

The health questionnaire

For a loan of €200,000 or less per insured person and to be repaid before age 60, the insurer is prohibited from making you fill out a health questionnaire (Service-Public fact sheet, verified on May 20, 2025).

The information sheet for the Aeras agreement states the condition as follows: the total amount of your mortgage loans must be less than or equal to €200,000, and the repayment period must end before you turn 60 (information sheet verified on May 7, 2025). The two information sheets are not worded identically: check your specific situation before deciding.

If you are given a questionnaire, the Aeras agreement provides two protections:

• The right to be forgotten. For cancer or viral hepatitis C, you do not have to declare it if the treatment protocol has been finished for at least 5 years without relapse, and if the future contract ends before you turn 71.
• A reference grid which lists certain illnesses. In the event of an increased risk, the insurer may request a surcharge, up to a maximum amount. You can also contact another insurer. The agreement provides for a mediation commission, whose information sheet specifies that it is not competent to rule on limitations and exclusions of coverage, nor on the level of the premium or surcharge.

Answering the questionnaire: what the law requires

You must answer the medical questionnaire accurately and truthfully. In the event of an intentional false declaration, the insurer may request the cancellation of the contract and refuse to pay the agreed capital or annuity (Article L113-8 of the Insurance Code, cited by Service-Public).

Numerical example (fictitious profile)

Situation. Sophie, 38, is borrowing €150,000 for her primary residence. She is the sole borrower and has no other mortgage. The bank is offering her a term of 20 or 25 years.

Issue. Does the duration change the way the insurer can question him about his health?

Strategy. Compare the amount and the age at which repayment ends with the two conditions in the sheet: €200,000 or less, and repayment ends before age 60.

Result.

At age 20, both conditions are met: the health questionnaire is not required. At age 25, reimbursement ends around age 63: the age requirement is not met, and the prohibition described in the information sheet does not apply.

This profile is fictitious. The calculation is simplified: it takes into account the age at signing plus the loan term. It does not consider the exact dates of birth and loan end, which can change the result for someone close to the age limit.

What changes depending on your situation

• The type of contract : the document gives a rule specific to group insurance for suicide.
• The nature of the loan : suicide coverage in group insurance, from the signing date, requires a loan for the main residence.
• Your age and the loan term, which play on the health questionnaire, the right to be forgotten and the age limits of the contract.
• Your professional activity : the definition of ITT and IPT refers to the activity you carry out or to any activity.
• Your other mortgage loans, for the threshold of €200,000.
• Your state of health and your medical history.

The rule depends on your situation. No results are guaranteed.