Establishment of the insurance is mandatory to obtain a mortgage, because it the insurance company that will pay back the loan in case of decease or disability of the borrower.
- In the case where there is only one borrower, the situation is simple, the insurance will cover the unique borrower
- In the case where there is two borrower, the insurance can cover separately and differently each of the borrowers.
We call the quota of insurance the distribution coverage among the borrowers. Banks generally require that this distribution takes into account the income of each of them and their contribution to the overall household income and to repay the loan.