Coverage share (borrower insurance)
The share of the loan covered by insurance on each borrower's life, which determines what the insurer repays the bank if one of them dies or becomes disabled.
When a loan is taken out by two people, each co-borrower is insured for a share, expressed as a percentage of the loan. The shares must add up to at least 100%, but can reach 200% if each is insured for the whole. With 50% each, the death of one repays half the outstanding balance, and the survivor keeps paying the other half; with 100% each, the death of one repays the loan in full. In practice the choice tracks how household income is split, with the larger share often placed on the partner who earns most of it. The premium is calculated on each share, which makes 200% cover markedly more expensive. For the insurer, the coverage share is a direct underwriting parameter, since it sets the sum at risk on each life, and it enters the comparison of cover when the borrower switches insurance.
A couple borrowing 300,000 euros in 2025 chooses 70% cover on the partner who earns most of the income and 30% on the other; if the first dies with 250,000 euros outstanding, the insurer repays 175,000 euros to the bank.
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