Debt balance insurance is related to a loan: it pays off your loan if you die before it is paid off. That way, your partner or other heirs don't have to. So that makes debt balance insurance a death or life insurance policy.
When you buy a house , the bank usually requires you to take out this insurance. You can deduct the premiums you pay for this for tax purposes. But debt balance insurance is also extremely useful for other loans. Just think of the loans you take out as a entrepreneur , a loan for your car or for a second residence.
At the time you take out debt balance insurance, you decide what percentage of the borrowed capital you want to insure. For example, a coverage of 100% means that your heirs will not have to pay anything back after your death, and a coverage of 50% means that they still have to pay half of the borrowed amount. A different ratio is also possible and especially interesting when one partner earns significantly less than the other. Feel free to visit and we will look into your situation so you can make the best choice.
Disclaimer
This page is part of a lexicon and does not provide product information or contractual details on insurance services. For specific information, please refer to the official documentation or contact your insurance agent.
