Loan Balance Insurance

Financial insurance during the term of your credit facility

Loan Balance Insurance

Financial insurance during the term of your credit facility

Well covered

This loan balance insurance is linked to your KBC credit facility. This means that you are always automatically insured for the right amount. The insurance evolves with the outstanding debt.

Disability cover

If you are unable to work due to sickness or an accident, the optional disability cover will ensure that KBC fully or partially covers the loan balance as you focus on your recovery.

Financial peace of mind for your loved ones

Your loved ones will have no need to worry about making the payments of your credit facility after your death. Thanks to the loan balance insurance, KBC will pay back some or all of the outstanding debt.

What is KBC Comfort Loan Balance Insurance?

KBC Comfort Loan Balance Insurance is guaranteed-interest life insurance (class 21) that offers financial protection to your loved ones. In the event of your death during the term of the credit facility, KBC will pay back some or all of the outstanding debt. Your loved ones will have no need to worry.

Linked to your KBC credit facility

KBC Comfort Loan Balance Insurance is linked to your KBC credit facility. In other words, the insurance will always automatically evolve with the debt still outstanding, even if you decide to pay off your credit facility early or if you have a flexible credit facility. This ensures that you are always insured for the right amount.

Premiums

  • Payment is made on four fixed quarterly maturity dates.
  • The premiums depend on your age, medical condition and certain risk increasing factors, such as smoking.
  • The premiums are recalculated every quarter based on the outstanding debt. This avoids any overinsurance if you pay off your credit facility early.
  • The premiums for persons residing in Belgium are subject to an insurance tax of 1.1% (in case of cover or the reconstitution of a mortgage loan for real estate) and 2% in other cases.

Cover percentage

The cover percentage of the loan balance insurance shows which percentage of the outstanding debt is insured. A cover percentage of 100% is ideal. This ensures that other borrowers or heirs will be exempt from making any further repayments in the event of your death.

The policy does not include a sum insured, as the insurance is linked to the KBC credit facility. A reference is made to the outstanding debt for the KBC credit facility.

Taxation

As a natural person, you enjoy tax benefits for the premiums paid. This is possible under the following tax systems:

  • Individual life insurance
  • Deduction if you own only one home

The amount qualifying for tax benefits and the size of the tax benefits depend on your individual situation and are subject to future changes (in the law).

If you enjoyed tax benefits for the premiums, the insurance allowance will be taxable.

Of course, you can also choose not to deduct the premiums from your taxes.

What is not insured?

As with any insurance policy, there are exclusions, such as:

  • Death by suicide of the insured in the first year of the contract. However, euthanasia according to the legal provisions is included.
  • Death of the insured as a consequence of an act of violence or active participation in events of war.

Optional: Disability cover

What is disability cover?

Supplementary disability cover means that KBC Insurance will cover some or all of your loan balance if you are unable to work due to sickness or a personal accident. You will receive a monthly allowance based on the loan balance and the premium for the loan balance insurance. The premium for this optional insurance is also reimbursed.

Some characteristics

  • The period coincides with the period of the credit facility to which the insurance is linked.
  • The premium depends on your age and the level of the insured allowance. The premiums are recalculated every quarter based on the outstanding debt.
  • The percentage of the disability cover is smaller than or equal to the cover percentage of the loan balance insurance.
  • A one-month elimination period applies: this means that if you are unable to work, you will only become entitled to your allowance after one month. You need to cover this period yourself.
  • A full medical questionnaire must be completed.

What is not insured?

As with any insurance policy, there are exclusions, such as:

  • Risk situations such as events of war and acts of violence
  • Aggravated risks such as certain sports or pre-existing conditions may be excluded

More things you need to know

  • KBC Comfort Loan Balance Insurance is governed by the laws of Belgium.
  • KBC Comfort Loan Balance Insurance requires medical acceptance.
  • The tax treatment may change in the future, and depends on your individual circumstances. Your intermediary will be glad to give you bespoke advice in this respect.
  • Term: coincides with the period of the credit facility to which the insurance is linked.
  • Your intermediary is your first point of contact in the case of questions and complaints you may have.  If you have any complaints, please contact complaints@kbc.be.  Tel. +32 (0)800 620 84 (free) or 078 15 20 45 (pay number), fax 016 86 30 38. If this does not result in a satisfactory solution, you can contact the Insurance Ombudsman, which acts for the entire industry, at Meeûsplantsoen 35, 1000 Brussels, info@ombudsman.as or visit www.ombudsman.as
    However, you always retain the right to initiate legal proceedings.
  • A special solidarity mechanism applies to the loan balance insurance to cover a mortgage loan if you only own one home. If an increased health risk results in an additional medical premium for the loan balance insurance that exceeds a certain minimum threshold, the compensation mechanism ensures that the surplus will be paid by the Compensation Fund rather than the policyholder. The policyholder does not have to specifically request this contribution from the Compensation Fund. The insurance company enforcing an additional medical premium exceeding the threshold will address the Compensation Fund directly to claim back the surplus. For more information, do not hesitate to contact our KBC bank branches and our KBC insurance agents. 

Contact your KBC insurance intermediary to request a quotation for KBC Comfort Loan Balance Insurance.

The KBC Comfort Loan Balance Insurance is a product of KBC Insurance NV – Professor Roger Van Overstraetenplein 2 – 3000 Leuven – Belgium
VAT BE 0403.552.563 – RLP Leuven – IBAN BE43 7300 0420 0601 – BIC KREDBEBB
Company authorised for all classes of insurance under code 0014 (Royal Decree of 4 July 1979; Belgian Official Gazette, 14 July 1979) by the National Bank of Belgium, de Berlaimontlaan 14, 1000 Brussels, Belgium.
Member of the KBC Group

Detailed information on this product can be found on the product fact sheet, which we recommend you read carefully before taking out this product

  • product fact sheet
  • general conditions

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