Revolut launches new insurance for borrowers in France

The digital banking platform Revolut has launched a new optional insurance policy for personal loan customers in France so they can protect themselves against situations that could make it difficult or impossible to continue paying their loan.

The insurance is launched with MetLife and helps people cover their repayments if they die, permanently disabled, are hospitalised or lose their job involuntarily. 

The insurance can be valuable for people with a large outstanding balance, as the cover can pay off some or all of what remains to be repaid, depending on the circumstances and policy chosen.

For now, it is available in France, Spain, Portugal and Romania and can be taken out when applying for a new Revolut personal loan.

People who already have a Revolut loan can also choose to add the cover.

What does the insurance cover?

The basic policy covers two of the most serious situations: death and total permanent disability.

If the borrower dies or becomes totally and permanently disabled as a result of an illness or accident, the insurance can repay 100% of the outstanding loan balance.

This means the remaining debt would not become a financial burden for their family.

The basic cover also provides help with repayments in certain cases of hospitalisation or temporary total disability.

In these circumstances, the insurance can cover up to 12 monthly loan payments, with payments capped at €1,500 per month.

A more comprehensive version of the policy also covers involuntary loss of employment.

This can again cover up to 12 monthly loan payments, helping borrowers continue to meet their repayments while they are unemployed.

The insurance is optional which means that customers do not have to take it out in order to obtain a Revolut personal loan.

Revolut does not give one fixed price for the insurance. Instead, the premium is calculated according to the borrower's profile and the details of their loan.

Are there restrictions?

The cover does not apply in every situation. For example, some of the benefits have age restrictions, with certain cover unavailable to customers aged 70 or over.

There are also minimum periods for some claims. Hospitalisation, for example, needs to last at least four days, while an unemployment period needs to reach at least 30 days for the cover to apply.

What loans does it apply to?

The insurance is linked to Revolut's personal loans. In France, Revolut currently offers personal loans of between €1,000 and €50,000, with repayment periods of up to seven years.

The loan protection insurance can be selected directly through the Revolut app when applying for a new personal loan, while existing Revolut borrowers can also add the cover through the app. 

The launch is part of Revolut's expansion of its financial services in France and it follows the bank’s move to become a fully licenced French bank. 

Revolut received its full French banking licence in August, and is now also increasing its physical presence in France, with plans for a Western European headquarters in Paris in 2027.