Mortgage and insurance

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Many people do not know well about the (compulsory) insurance with a mortgage. Read here all information about what you should pay attention to. Many people do not know well about the (compulsory) insurance with a mortgage.

It is often thought that a life insurance policy is not mandatory to take out, but this is sometimes the case. Disability insurance is not compulsory, many of whom think it is mandatory. Below you can read about the exact situation with regard to insurance and taking out a mortgage.

Home insurance

Home insurance

When you take out a mortgage, it is mandatory to take out a home insurance policy. With a home insurance you insure everything that is attached to a house and that cannot be removed just like that. The house itself naturally also falls under the home insurance.

The amount that is insured with a building insurance is based on the reconstruction value of the house. This is the amount that it would cost to build a comparable home.

Property insurance

Property insurance

It is very wise to take out household insurance, so that the whole household is insured in the event of a fire or burglary, for example.

With home insurance you insure everything that can be picked up and taken from the house, for example a television, jewelry and furniture.

Mortgage and insurance

Mortgage and insurance

For legal assistance with conflicts you can insure yourself with legal assistance insurance. If you end up in a conflict, then it is really nice if someone can inform you about your rights.

When buying a house, it is wise to take out legal assistance insurance with the “living” heading. In that case you are also insured for conflicts that arise about your owner-occupied home.

Income insurance in the event of disability or unemployment

Income insurance in the event of disability or unemployment

When you become disabled or unemployed, your income may fall considerably. When taking out a mortgage, it is possible to take out an insurance policy that prevents you from paying the mortgage costs in the event of disability or unemployment. With an income insurance policy you will receive a monthly payment to offset the mortgage costs (in part) when you become unemployed or incapacitated for work. It can also provide, for example, for a premium exemption from a life insurance policy that belongs to the mortgage.

Term life insurance

Term life insurance

Nine out of ten times it is necessary to take out life insurance when a mortgage is taken out. The NHG even stipulates that if the part of the mortgage that exceeds 80 percent of the market value of the home must be covered with insurance when taking out the mortgage with NHG.

For mortgages without a National Mortgage Guarantee it differs per lender. If you want to exert less financial pressure on the surviving relatives, it may be wise to take a higher insured amount than the lender demands.

Death insurance policy payment
A life insurance policy pays out when the policyholder dies before a certain date. With the benefit, your partner or surviving relatives can (partially) pay off the mortgage and thus you can continue to live in the home or survivors will not be left with debts.

The insured amount (possibly to be paid out) is determined at the start of a life insurance policy. You can opt for a fixed amount or falling term life insurance policy. In the event of falling insurance, the insured amount decreases during the term. The insurance is taken out in combination with a mortgage on which you pay off, for example a linear mortgage or annuity mortgage. With such a mortgage, the insured amount is the same as the residual debt.

Term life insurance policy

Unchanged
The amount paid out in the event of death remains the same throughout the duration of the insurance.

Falling linearly
The amount paid out in the event of death decreases by the same amount every year during the term. Premium is paid 5 years shorter than the term of the insurance. Example: with a term of 30 years a 25-year premium is paid.

Annuously falling
The amount that is paid decreases to a limited extent at the beginning of the term and later falls much more sharply. As with linearly falling premiums are paid 5 years shorter than the term of the insurance. Example: with a term of 30 years a 25-year premium is paid. You can choose an annuity percentage yourself. With this you can determine yourself to what extent the amount to be paid drops.

Maximum age and final age
Most insurers apply a maximum age at the start of a life insurance policy between the ages of 60 and 70. The final age is also important. This is the age that you have when the insurance ends. For most insurers, the maximum final age is between 70 and 80 years.

Medical examination and health declaration
Above a certain insured amount, insurers ask for a medical examination. In any case, insurers always ask for a health certificate. Insurers are not just allowed to inspect someone or ask specific questions about health if the insured amount is less than € 250,000. When you take out a new life insurance policy, it is very important not just to cancel an old insurance policy before you are medically approved by the new insurer. Your health can be a bottleneck to be able to take out a new life insurance policy.

Premature termination of the term life insurance

A life insurance policy is entered into for a specific duration, for example 10, 15 or 30 years. It is possible to terminate an insurance prematurely. Some insurers work with a premium book that you build up. This will be paid out upon termination of the insurance. In most cases, however, nothing is paid. This is because the chance of premature termination is included as a discount in the premium.

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