Financing your own home can quickly turn into a debt trap in the event of death. We explain to you how you can optimally secure your real estate loan.
If you want to fulfill your dream of owning your own home, you usually have to take out a large real estate loan in order to actually be able to call the property your own one day.
It often takes several years until the loan for the house or condominium is paid off. During this time, many events can take place in and outside the home that will test life. For example, if the father of a family dies, who co-financed half of the real estate loan, the surviving dependents are often threatened with high financial losses, which in case of doubt can lead to the foreclosure of the home.
With term life insurance you can ensure the financing of your dream home beyond death. Hannoversche will help you with this .
Buying real estate: you have to consider this before buying
A house in the country or a charming old apartment in the big city? The decision needs to be carefully considered. Before buying your dream property, you should consider a few essential points.
Because behind the facade of the supposedly perfect home lurk hidden costs or unpleasant surprises that many real estate agents know how to skilfully disguise. It is therefore important not to let the broker wrap you around your finger and to check important criteria before signing the contract :
- Overall condition of the property: windows, insulation, electrics, etc.
- Location of the property: transport links, shops, schools
- Modernization or refurbishment measures required?
- Do you have an energy certificate ?
- Do you have a building permit for renovations ?
- Have you secured your home loan ?
You should take the last point on the checklist seriously so that your dream of owning your own home does not come to an abrupt end.
Real estate loan: how to finance your dream home
In very few cases, the dream property is financed in one fell swoop. Most of the time, the financing is handled through a suitable real estate loan that binds buyers to the bank for years. After all, the money houses do not lend larger sums without appropriate collateral. In addition to the basic creditworthiness, many banks only approve the loan application if the applicant (s) take out term life insurance. The lower the risk for the bank, the better the chances of getting a loan with good terms.
Secure credit: sit back and enjoy your dream home
Term life insurance not only serves as protection for the loan made for banks: it serves primarily as financial protection for your family or your partner in the event of unforeseeable events such as accidents or illnesses with a fatal outcome. In particular, (young) families and couples with a main or even sole earner are strongly advised to take out term life insurance. Only in this way can surviving dependents be adequately protected in the event of death and – in the worst case – avoid foreclosure.
The principle of term life insurance is simply explained: If one of the borrowers dies , the insured amount agreed in the contract is paid out to the surviving dependents . In order to fully secure your loan, it naturally makes sense to adjust the sum insured to the total amount of the loan.
With risk insurance in the back, nothing stands in the way of your dream of owning your own home and you can lean back and relax in your own four walls.
On the safe side with Hannoverschen
But not only when buying a property should high loans be secured with term life insurance. The same applies to other major investments. Hannoversche offers profitable conditions:
- three tariffs for every budget
- Contract can be terminated monthly at any time
- provisional insurance cover from receipt of the application
- possible adjustment of the term to the interest rate and repayment rate of the loan
- Payment of contributions in the event of occupational disability (on request) and much more
TIP: The earlier the risk insurance is taken out, the lower the premiums.