Borrower's insurance: is it mandatory?

For a mortgage, borrower's insurance is not mandatory, but it is generally required by the bank: this is according to economie.gouv.fr. The lender can therefore impose it as a condition of the loan. However, you remain free to choose the insurer: you are not obligated to take out the bank's policy.

This page answers the question "is it mandatory or not?" It does not address the cost of loan insurance, nor the situation of non-resident borrowers. Changing or canceling an existing contract, as well as the health questionnaire, each have their own dedicated page.

The rules below come from official pages of service-public.fr (verified on 20/05/2025 for mortgage credit, on 13/03/2025 for consumer credit, on 16/10/2026 for insurance) and economie.gouv.fr (page written on 09/04/2025).

What the bank can demand

The lender from whom you are applying for a mortgage may require you to sign an insurance contract. They will set their own framework that all contracts must adhere to:

• the "minimum guarantees" (death, disability, etc.), a term used by service-public.fr; ;
• there quota, that is to say the amount to which the credit must be insured, at 100 % or in part; ;
• a custom sheet, which defines the characteristics of the insurance contract you need to obtain.

Whether insurance is mandatory or optional must be specified in the preliminary loan offer (economie.gouv.fr). The lender will only make the loan offer once you have obtained an insurer's agreement.

And what about consumer credit?

service-public.fr states that borrower's insurance is not mandatory for consumer credit. However, the lender may require you to take it out before granting you the loan.

This page does not cover other types of loans.

What you choose

You have three options for securing your mortgage loan:

1. the borrower's insurance contract that the bank markets; ;
2. a collective contract offered by one of its partners, called a group insurance contract; ;
3. the contract of another insurer.

service-public.fr states it in one sentence: you are free to contact another insurer. economie.gouv.fr specifies that you remain free to contact the insurer of your choice.

If you choose an external borrower insurance contract, your bank cannot change the terms of the mortgage loan (economie.gouv.fr).

The contract you choose must comply with the bank's personalized terms and conditions.

The coverages of a borrower's insurance contract

What your bank requires is detailed in your personal information sheet. According to service-public.fr, this sheet is defined using a maximum of 11 criteria for death, loss of autonomy, disability and incapacity coverage, and a maximum of 4 criteria for job loss.

What differentiates two contracts

According to service-public.fr, the waiting period and the deductible allow insurance contracts to be differentiated, apart from the interest rate.

You must also be informed of the total cost of the insurance. Payment of the premium begins upon signing the preliminary loan offer, unless otherwise stipulated in the contract.

If your health is in question

If you have a pre-existing health condition, your mortgage insurance application will automatically fall under the Aeras agreement (service-public.fr). The health questionnaire and its thresholds are detailed on a dedicated page.

Numerical example (fictitious profile)

Situation. Marc is financing his primary residence with a €300,000 loan over 240 months, insured at 100% (%). His bank informs him that borrower's insurance is required. Marc wants to know what the policy would pay, and to whom.

Issue. Understand what the insurance pays out in the event of death, before choosing between the bank's contract and that of another insurer.

Strategy. Marc bases his work on the text from service-public.fr: in the event of death, the insurance company pays the lending institution the outstanding balance on the day of death, up to the insured amount. He then compares the contracts on the personalized information sheet his bank provided, including the waiting period and the deductible.

Result. To simplify, we assume the capital is repaid in equal installments, without interest (a hypothetical scenario: a real loan is not amortized this way). We also assume an insured amount of 100%. This equates to €1,250 of capital repaid per month. If death occurs after 84 monthly payments, €105,000 of capital will have been repaid. The insurance company would pay the lender the remaining capital, i.e. €195,000, that is to say 65 % of the borrowed capital.

This profile is fictitious. The amounts illustrate the calculation. They do not reflect your situation or the terms of your contract.

What changes depending on your situation

• The type of credit : real estate or consumption, with a scheme described separately above.
• Your loan offer : it is she who specifies whether the insurance is mandatory or optional.
• Your personalized profile : it sets the coverage and the quota that the contract must respect.
• Your state of health, which may involve the Aeras convention.
• The number of borrowers and the percentage retained for each one.

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