What happens to your loan if you die?

What happens to your loan if you die?

You've bought a house or an apartment with a bank loan. Of course, the bank will want you to repay the loan. You'd normally use your income to do that. But what if you die and that income suddenly stops? Or what if your partner dies? Solution: Loan Balance Insurance. 

Loan Balance Insurance

Don't leave your loved ones to pay off your debt. Loan balance insurance stops this from happening. It's designed to cover the balance of your loan in the event of your death. If you die, loan balance insurance pays out a sum equal to the part of the loan you still have to pay to the bank.

So that you can make sure no one has to fork out for your loan. If you die before the loan matures, your insurer will pay the balance of the loan to your bank. You can also arrange for part of your debt to be paid off if you wish. For instance, by taking out insurance for the whole of your loan.

Is it compulsory?

Loan balance insurance can provide 100% cover against death. You can also take out additional cover in case of unemployment. But it's not compulsory. However, your bank may request that you take out loan balance insurance together with your loan. They often go hand in hand. But it doesn't have to be like that. You might take out loan balance insurance with a bank with which you don't have a loan. Or with a different insurance company. 

Was this page useful to you? Yes No

Work out your family insurance

Work out your family insurance at KBC and quickly compare your price
Work out your family insurance

Cancellation of contract

Cancellation of contract

KBC Comfort4Life

With KBC Comfort4Life you insure the future of your loved ones and invest with the best possible risk management.
KBC Comfort4Life

Pension saving in 2019: what is the maximum amount?

What is the maximum you can put away in your pension savings scheme in 2019? Find out which amount gives you the best tax break and get more savings tips.
Pension saving in 2019: what is the maximum amount?
KBC uses cookies to make your online experience easier and to fit your needs and preferences. By browsing the KBC site, you agree to the use of these cookies. Learn more and see how to decline cookies?Click here.