Those who take out a balance insurance policy should also take the fiscal picture into account. A debt balance insurance is, under certain conditions, namely tax deductible. Although there are also comments.
For example, the surviving taxes must pay on the balance paid if you have deducted the premiums from your debt balance insurance at least once for tax purposes. Discover all the pros and cons here!
Pro: bringing in debt balance insurance is fiscally beneficial
If your tax hive is not yet completely filled, it may be to your advantage to include your debt balance insurance premiums with the taxes. Certainly if a large amount of your loan has not yet been paid. The conditions for eligibility for tax deductibility of your outstanding balance insurance premiums can easily be summarized:
- The debt balance insurance was taken out before the age of 65.
- The beneficiary has full ownership or usufruct of the home.
- The debt balance insurance is taken out on your own, as in our Hypo Protect Classic formula.
Debt balance insurance
Do you opt for the one-off premium ? Then introducing the debt balance insurance is a good way to reach the maximum amount. This is especially true if you take out the outstanding balance insurance at the end of the year for the purchase of your home or other investment that starts next tax year.
Contra: taxes on the paid out capital
However, depending on your personal needs, it may also be disadvantageous to tax your debt balance insurance. Because then your next of kin will be taxed on the capital paid out . Do you want to leave your next of kin the largest possible amount? Then it is best to choose not to enter the premiums of your debt balance insurance.
Conclusion: If the maximum deductible basket is already completely filled, it is useless to enter the premium for the outstanding balance insurance. In the event of death, the amount paid will be taxed, while you yourself have not benefited from a tax reduction or tax benefit. If the maximum basket is not yet filled, your choice will depend on personal preferences.
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