When you buy a home and take out a mortgage, you are usually committing yourself for many years. But what happens to that mortgage if you unexpectedly pass away? For your partner or family, this can have significant financial consequences.
With outstanding balance insurance, all or part of the outstanding mortgage balance is repaid if you die during the term of the loan. This helps protect your loved ones from being left with a substantial financial burden.
Outstanding balance insurance is a type of life insurance linked to a loan, most commonly a mortgage used to finance a home.
If you pass away before the loan has been fully repaid, the insurer repays all or part of the outstanding loan balance directly to the lender. This means your surviving family members will no longer have to repay the remaining debt, or only part of it, depending on the level of cover.
The insured amount usually decreases in line with your mortgage: as you repay more of the loan, the insured capital is reduced accordingly.
Although outstanding balance insurance is not always a legal requirement in Belgium, lenders often require it as additional security when granting a mortgage.
Covers the repayment of your outstanding mortgage in the event of death.
Provides financial protection for your partner or family, helping them keep their home.
Covers the financial risk of losing one income while the mortgage repayments continue.
Provides peace of mind by helping ensure your loved ones are not left with outstanding debt.
Outstanding balance insurance is primarily intended for individuals taking out a loan to purchase a home.
It is particularly suitable for:
For couples, the cover can be arranged in different proportions, such as 50/50, 60/40 or 100/100. This allows you to determine how much of the outstanding mortgage will be repaid if one of the insured partners passes away.
The premium for outstanding balance insurance depends on several factors, including:
You can choose to pay the premium as a single lump sum or spread the payments over several years.
As premiums and policy conditions can vary significantly between insurers, Van Dessel's advisors compare different solutions to help you choose the cover that best suits your personal situation.
a tailor-made partner
We start from your specific situation and take the time to thoroughly understand your risks, needs, and objectives. This way, you receive advice and guidance tailored to your business and everyday practice.
already 80 years in insurance
Thanks to our years of experience, we analyze your risks and insurance needs with a broad perspective. We provide a well-thought-out approach, clear solutions, and the right protection for your business.
beyond standard insurance
No standard formulas, but solutions tailored to your activities and challenges. From analysis and implementation to support in case of claims: we provide an approach that works in practice.
Considering outstanding balance insurance for your mortgage?
The advisors at Van Dessel Insurance Brokers will help you determine the right level of cover, compare policies from different insurers and choose the solution that best fits your financial situation.
This gives you the peace of mind that your loved ones are protected and your home remains financially secure.
Didn't find the answer to your question, or would you like to discuss your situation with a specialist? Our colleagues are happy to help you.
