Insurances
Apr 2, 2023
Life insurance: Something that most of us don't think about often
Are you considering taking out a mortgage? While it's no longer mandatory to have life insurance (ORV) with your mortgage, it's still a smart idea to do so! An ORV provides financial security in case you or your partner passes away, allowing you to use the payout to pay off your mortgage and lower your future mortgage payments. This way, your partner won't be stuck with hefty mortgage payments after you're gone.
Not mandatory, but highly recommended!
Although it's no longer mandatory to have an ORV with your mortgage, it's still essential to consider. If you have a family, imagine what would happen to them if you or your partner passed away before the mortgage was fully paid off. Could the remaining partner still afford the mortgage payments? Would they be able to continue living in the house they call home? An ORV provides a financial cushion and ensures your loved ones can keep their home even if the worst should happen.
It's important to note that if you're a couple living together without a registered partnership or cohabitation agreement, your rights are different from those of married couples. In such cases, it's crucial to seek expert advice to ensure the payout goes to the right person in case of death.
Don't let unexpected events catch you off guard. Get an ORV and rest easy knowing your loved ones will be financially secure if the worst should happen. The one-time off cost for a life insurance is € 250 per policy.
Life insurance: Options to choose from
Annuity, linear, and steady life insurance are the three most common kinds of life insurance in the Netherlands. Each of these plans have their own set of characteristics and advantages. To assist you in making an well considered choice, here is an overview of the distinctions between the three kinds of policies.
Annuity Life Insurance
An annuity life insurance contract is a form of life insurance that declines over time in an annuity form such as your mortgage loan. It starts with for example € 300.000 and ends eventually with € 17.000 over a timeline of 30 years (360 months). The monthly payment of such an insurance depends on various factors such as your age and the health of the applicant.
Linear Life Insurance
An lineair life insurance contract is pretty much the same as the annuity one. It also declines over time in an lineair form such as your mortgage loan. It starts with for example € 300.000 and ends eventually with € 10.000 over a timeline of 30 years (360 months). The monthly payment of such an insurance depends on various factors such as your age and the health of the applicant. The lineair, as you noticed, does drop significantly over time and the end.
Steady Life Insurance
An steady life insurance contract stays the same over time and doesn't change. So, in other words it doesn't decline over time. It starts with for example € 300.000 and stays on € 300.000 based on a timeline of 30 years (360 months). The monthly payment of such an insurance depends on various factors such as your age and the health of the applicant.
Get in touch with Financial Consultancy Holland
Do you have questions about your financial situation in the Netherlands or would you like to get in touch with us? You can do this via our contact form and we will contact you as soon as possible. Looking forward!
