There are a lot of extra costs involved in purchasing a home. Registration fees, notary fees, deed costs, … and of course the debt balance insurance. That is not mandatory, but strongly recommended if you take out a home loan.
In order to keep the total price tag under control, it is better to buy a debt balance insurance at the correct rate. What does a debt balance insurance cost? Discover it here!
What does a debt balance insurance cost? Depends on your loan!
The price you have to pay for your debt balance insurance largely depends on your loan. The premium is calculated on the basis of the borrowed capital, the interest rate and the duration of the loan. In addition to the death risk , the payment term also plays a role. There are three options:
- One-off premium : the premium is paid immediately upon taking out the credit. This can be the most advantageous formula in case of taxation at the end of the year.
- Annual constant premium over two thirds of the term : slightly more expensive, but you can spread the payment over a number of years.
- Six-monthly, quarterly or monthly premium payments : the payments are spread even more. Fractionation costs are charged here.
Compare debt balance insurance with a simulation
Exactly how much you are going to pay also depends on the insurer with whom you are going to work. To be sure of the best price-quality ratio , it is therefore a matter of comparison. This can easily be done using an online simulation. Enter the borrowed capital, interest rate and duration of the loan and you will immediately know what your debt balance insurance costs!
Fixed rate or variable rate
The total cost of a balance insurance policy also depends on the rate that you choose. With a fixed rate (also known as ‘guaranteed rate’), the rate is guaranteed for the entire duration of the contract. With the cheaper variable rate , the rate is only guaranteed during the first three years of the term.
A rate increase could, for example, occur due to a spectacular rise in mortality rates. In practice, however, an adjustment of the variable rate is rare … If you wish to receive more information regarding the costs of a balance insurance, please do not hesitate to contact us. We are ready!