Numerous translated example sentences with “for credit protection” – English-German dictionary and search engine for millions of English translations. A sudden death can cause huge financial problems for family members with a high volume of long-term loans. Many examples of translated sentences include “Credit Protection” – German-Spanish dictionary and Spanish translation search engine. In the case of a larger investment, the loan must be secured. State guarantee or export credit insurance and EC state aid ban.
Credit protection for the purchase of real estate through term life insurance
The acquisition or construction of a property is an organizational and financial strength for those affected, which involves many risks. Therefore, consumers need to independently educate themselves about the obstacles to building financing and initiate the right decision. Already today you finance your dream home. Nothing changes in your situation, you pay for loans1 for 27 years, until you are allowed to call the holiday home your own.
This is the starting point that most consumers imagine. Remember that if you make a round of financing today, you expect that you will earn as much in 30 years, be perfectly fit and have not changed anything else. The fact is, every bad situation affects paid consumers. Nobody wants to believe in the death of man, because we can imagine crossing the earth on a boat trip in old age.
Real estate financing is in practice a joint project involving two project partners. The latter can no longer repay the loan volume and is lost in a forced sale. According to this website, solving the problem of loss of payment by the death of the principal worker is the conclusion of a risk life insurance policy. The price of such insurance is relatively low, since it only arises in the case of the death of the client.
The balance sheet and income statement is no longer always an optional service. Some lenders and banks require their clients to take out a life insurance policy. This will ensure that someone will repay the loan. Risk life insurance claims to overcome the financial obstacles resulting from death. The other point is the health risks that are determined before the conclusion of the contract as part of a health check.
The only serious advantage of the directive is that the insured does not always get its benefits. Consumers should consider risk life insurance as a short-term solution that they will hopefully never need, but will rescue their homes in an emergency. Completing a risk life insurance is therefore more complicated and more expensive. It is therefore advisable to take out insurance at a young age when your capital is low and you are relatively old.
At present it is still saving capital.
The loan must be taken up to the age of 30 at the latest and repaid in a maximum of 25 years. At 25, he can take out a risk life insurance, which is valid until his 55th birthday. Because he has little equity and is healthier, the monthly cost of insurance is low.
At the age of 55, he will not only have paid for the property, his baby will no longer need economic help. In addition to the risk life insurance, there are further opportunities for consumers to secure their economic future in the event of the death of the main worker: Mortgage: The mortgage is entered in the cadastre of the building. It is essentially a right of access for the house bank, which may auction the house if the borrowers can no longer afford their payments.
Own funds: Own funds are generally used to reduce the volume of loans for real estate financing. It may be z. B. appropriate to put the capital in a pension insurance. Property tax: It is a versatile variant of mortgages. It has the disadvantage that, in contrast to a property, its depreciation does not decrease when the loan is repaid.
One of the main tasks of mortgages is to temporarily prevent foreclosure if the debtors become insolvent. Guarantee: Borrowers can force a third party to repay the loan if they are no longer able to pay the installment. Guarantees are common when the creditworthiness of a natural person for the loan is insufficient. Remaining debt insurance: It is a variant of the already mentioned risk life insurance and secures even in the event of death of the borrower against default.
In risk insurance, it has remained the same throughout the contract. Disadvantage: Borrowers must co-finance the contributions through the loan, which increases their loan amount and interest burden. Consumers should consider every aspect of real estate finance. He can cover his loss of earnings with a risk life insurance.