Loan insurance
For whom?: Anyone with mortgage or consumer credit — Annual premium: 300-6000 MAD/an
Loan insurance guarantees credit repayment in case of death, disability or incapacity of borrower. Required by all banks for mortgage in Morocco. Cost: 0.2-0.5% of borrowed capital per year.
Coverage details
Death + IAD (Absolute Permanent Disability) systematic guarantee. Optional: ITT (Total Temporary Incapacity) to cover work stoppages > 3 months. Quota: 100% one borrower, 50/50 or 70/30 for borrowing couple.
Benefits
- Family protection: credit repaid if death, no heir burden
- Required for mortgage, loan obtainment conditional
- Negotiable tariffs: insurance delegation possible (−30-50% vs bank)
- Premium refund if early credit repayment
Limitations
- Increased premium after 50 (30-50% surcharge)
- Exclusions per medical history (smoker: 30% surcharge)
- Standard group bancassurance less advantageous than delegation
- Some banks impose their contract (questionable practice)
2026 taxation
Premiums not IR-deductible. Capital paid to bank (credit repayment): not taxable. If capital higher than credit balance (rare), excess paid to designated beneficiaries, exempt from inheritance duties.
Eligibility
Age at adhesion: 18-70. Guarantee duration: until 75-80 years (age at credit end). Mandatory medical questionnaire. Smokers: 25-40% surcharge. High-risk sports: surcharge or exclusion.
Concrete example
1M MAD mortgage over 25 years, borrower 35 non-smoker: bancassurance premium 2,400 MAD/year (0.24% capital). Via delegation: 1,200 MAD/year (−50%). Total savings over 25 years: 30,000 MAD.
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