Even today, it is still far too rare for home builders and homebuyers to think about risk prevention when financing mortgages. Although bank and financial advisers are very likely to raise this issue, unfortunately, people usually shy off quickly to avoid additional financial burdens.
Supplementary insurance coverage is not free of charge
In this point, the prospective borrowers are of course right: Supplementary insurance coverage is not free of charge. The income would indeed be further burdened by taking out insurance. However, the risks must not be underestimated. If no risk provisioning is carried out and it comes to an emergency, the damage is enormous.
The biggest risk in mortgage lending is that the main earner of a family dies. In such a case, the survivors usually have the problem of being unable to afford the financing. Under certain circumstances, the entire property must be abandoned. Especially if the real estate loan has been used for years, this would be extremely painful – in principle, you would lose all his belongings.
Costs do not have to be as high as is often assumed
Especially for families, it is therefore important to make provision. The costs do not have to be as high as is often assumed. The costs incurred depend largely on the chosen insurance coverage. A classic life insurance course, of course, with a proud contribution to book. Very different is the term life insurance: Since no capital formation takes place, but one pays only for the risk protection, the costs are significantly lower. Converted to the month, the contribution is only a few euros.
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