Real estate loans: unemployment insurance with assistance to return to employment

Crédit Immobilier de France markets over the past year unemployment insurance in addition to the repayment of the loan, the borrower is actively assisting in finding a job. The clientele seems seduced: the equipment rate reached a three-borrower.

Crédit Immobilier de France (CIF), specialist mortgages with 40,000 to 50,000 new customers every year, celebrates the success of its insurance against the risk of job loss, called "Active Protection Employment" was launched there is a year and created specifically for its account by CNP Assurances. "Submit a response exclusively financial loss of employment did not seem enough," explains Thierry Gillouin, Director of Marketing of Credit Immobilier de France. The hotel offers a contract in effect that in addition to conventional financial guarantee in case of unemployment, offers a real guarantee of out-sourcing, supported by his partner, Econova (subsidiary of Altedia).
Embarking on a journey back to employment

Clearly, he is helping the person licensed to find work quickly. But it is not a word in the air or a simple guarantee of assistance as may be found in other contracts. In the contract of ICF / NPC, the borrower must, in case of problem, formally engage in a course of returning to work, first with an interview given very early period of unemployment, followed by d 'a few days of training in techniques for job search and then a weekly maintenance (the 1,500 agencies Adecco offer their premises for holding these discussions with specialists Econova). "We do everything to prevent the employee who loses his job is sort of a working environment," argues Marie-Helene Seguy, head of partnerships at the direction of bank customers in CNP Assurances, adding that in " 75% of cases, the approach is beneficial. "

A borrower has agreed on three in 2009
The creation of such a guarantee against unemployment corresponded to a very specific problem: fewer and fewer borrowers will choose the insurance job loss Crédit Immobilier de France (CIF): 16% in 2005, 14% in 2006 and only 12% in 2007. Suddenly, the institution wanted to create a differentiating contract, which accompanies and takes over the insured from loss of employment. The formula is obviously successful, knowing that the CIF is intended primarily for workers and employees: in 2009, one customer in three guaranteed by contract "Active Employment Protection.
How it works and how much does it cost?

In addition to support for return to employment, the main security is financial, with a refund of part of the monthly payment in case of unemployment. Two forms exist: an assumption of 25% of the maturity of the loan over a period of six months, an assumption of 50% over a further period of 18 months (24 months total). In the first case, it costs 0.14% of borrowed capital and in the second, 0.27% of the capital borrowed, or, for an average loan of 140,000 euros over 25 years, for example, the unemployment insurance premium s' raise to 16.33 euros per month for the minimum guarantee and 31.50 euros per month for the second. All borrowers occupation can subscribe to the condition of being under the age of 60. the waiting period is one year, but beyond the warranty immediately, capital is expected even when the unemployment, equivalent to 150% of last installment paid (or 1,100 euros for a monthly average 738 euros) and can finance his travel to job interviews or a new dress to present themselves at its best.
Collateral used four times

The novelty is that this guarantee of 6 or 24 months, renewable four times during the life of the loan. To enjoy again, the borrower must have worked at least 12 months between two periods of support. "It is very rare on the market. Average contracts provide for two periods of care, not more," said Marie-Helene Seguy. At a time when unemployment is increasing, this contract may be an appropriate response for those who can afford the costs.