Do you have plans to take out a home loan? Then you’d better take out a credit balance insurance. For your family it is the guarantee for a financially carefree future.
In order to exclude unpleasant surprises in advance, however, it is advisable to thoroughly inform yourself in advance about what exactly a debt balance insurance covers. Below you will find an overview of everything you need to know about the coverage of a debt balance insurance!
Coverage percentage: crucial factor
A debt balance insurance ensures that the monthly repayment of your home loan is entirely or partially canceled when you or your partner dies. Whether the insurer provides a large or a limited amount depends on the coverage percentage of your outstanding balance insurance.
Debt balance insurance: 100% coverage or not?
If both partners each insure themselves for the full capital (100%), the insurer will take over the full 100% of the insured capital in the event of death and the remaining partner will no longer have to repay anything. In the case of a 50-50 ratio balance insurance, the remaining partner must still be responsible for half of the monthly repayment (or half of the remaining insured capital) in the event of death. This ratio is cheaper, but it naturally offers less certainty.
Because two partners taking out a home loan do not necessarily have the same income, it is also perfectly possible to choose a different coverage percentage for each partner. All combination options exist, as long as you arrive at the coverage percentage that guarantees your peace of mind the best (if the coverage percentage is not imposed by the bank).
Debt balance insurance coverage: what about disability?
The question is often asked whether a balance insurance policy also intervenes in the event of illness. That is not the case. A debt balance insurance only covers a death. Yet it is perfectly possible to also insure yourself for other unforeseen turns, namely by linking an additional guarantee to your debt balance insurance.
Additional guarantees are an additional guarantee on top of your debt balance insurance. This concerns optional guarantees for occupational disability (due to illness or disability), death due to an accident and involuntary unemployment . For example, if you lose your job unexpectedly, a fixed amount will be paid for a maximum period of one year per dismissal. Do not hesitate to contact us for more information about these additional guarantees or a general insurance policy. We are ready for you!