The insured is the person who is covered for the risks covered by the contract (death, disability, disability). He is usually the underwriter of the loan insurance contract. The beneficiary of the contract is the financial institution that receives the repayment of the capital in the event of a risk covered and borne by the insurer.
Group insurance is a group insurance offered to the borrower by a lending institution and negotiated by the lending institution with an insurance company. This insurance distributes risks among its various subscribers, clients of the lending institution. It has a single rate set by age and has limits (age, state of health, occupation or amount borrowed). When the borrower does not fall within the criteria of this insurance, he can obtain the assumption of the guarantees of the contract by paying a premium.
The banker is required to deliver clear and precise information to the borrower by providing him with information notice defining the risks that are guaranteed.