Outstanding balance insurance: for real estate with complete peace of mind!

Are you financing the purchase of property with a mortgage?

You want to avoid leaving unaffordable repayments to members of your family in the event of an accident? Is your bank requiring you to insure the amount due under your mortgage? 

Outstanding Balance Insurance is the right protection for you!

If something were to happen to you (disability or death), outstanding balance insurance guarantees that your mortgage will be repaid.

What is Outstanding balance insurance?

Outstanding balance insurance enables you to insure the amount due under a home mortgage.
Outstanding balance insurance ensures that, in the event of death or disability, the mortgage will be repaid.
The sum insured with the outstanding balance insurance varies to match the amount which remains due under the mortgage.

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Characteristics of the outstanding balance insurance

The outsanding balance insurance enables to

  • co-subscribe
  • paywith single premium or periodic premiums
  • distribute the amount to be insured among joint borrowers
  • insure every borrower for 100%
  • to add a disability cover

How is the outstanding balance insurance calculated?

The amount of outstanding balance insurance is calculated on the basis of:

  • the amount due under the mortgage, its interest rate and its term 
  • the number of people to be insured and the percentage covered for each insured person
  • the age of the people to be insured* *

* A health questionnaire must be answered before taking out an outstanding balance insurance and additional medical examinations may be required.

The benefits of outstanding balance insurance

  • borrow with complete confidence
  • protect your loved ones against risks
  • choose the cover you need in accordance with your circumstances
  • decide on a payment method (one single premium or a series of premiums)
  • tax deductibility of the insurance premiums

Do you have a property project in mind?

Would you like more information on outstanding balance insurance?

Tax deduction for outstanding balance insurance

The amount that may be deducted depends on:

  • the way in which premiums are paid;
  • your age when you take out the insurance;
  • the composition of your household.

Tax deduction with a periodic premium*

Tax payer Without a spouse With a spouse
Without a spouse € 672 € 1,344
with 1 child € 1,344 € 2,016
with 2 children € 2,016 € 2,688
with 3 children € 2,688 € 3,360
with 4 children € 3,360 € 4,032
for each additional child € + 672 € + 672

*According to 111 LIR Article

Tax deduction with single premium*

Tax payer Up to the age of 30 Increase per completed year from age 31 to 49 50 years and over
Without a spouse € 6,000 € 480 € 15,600
with 1 child € 7,200 € 576 € 18,720
with 2 children € 8,400 € 672 € 21,840
with 3 children € 9,600 € 768 € 24,960
with 4 children € 10,800 € 864 € 28,080

*According to 111 LIR Article

How does my policy protect me?

Example of a married couple

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Alex and Caroline buy a new house financed by a 25-year mortgage of €900,000 at a rate of 1.5%. They covered the repayment of the mortgage with a single-premium outstanding balance insurance policy covering 50% each.

  • Alex : 32 years old, outstanding balance insurance for €450,000
  • Caroline : 29 years old, assurance solde restant dû pour €450,000
  • They have two children

They can deduct:

  • €9,744 for Alex (he has two dependent children for tax purposes)
  • €6,000 for Caroline

A total maximum deductible ceiling of €15,744

Alex dies in an accident at the age of 49.

Alex was insured for 50% of the amount due under the mortgage. Outstanding balance insurance covers all Alex’s repayments: €164,037 are therefore covered by the policy.

Example of a single person

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Manuel buys an apartment financed with a mortgage of €500,000 over 25 years at a rate of 1.5%. He covers repayment of this mortgage with an outstanding balance insurance with periodic premiums covering in total 100% of the amount outstanding, together with total and permanent disability cover.

Manuel is 28 years old. As a single person, he can deduct €672 per year from his tax declaration.

Following an illness, Manuel is disabled at the age of 45.

Manuel was covered for 100% of the amount borrowed under his mortgage. The outstanding balance insurance covers the total amount still due the mortgage, i.e. €182,563.

Download our outstanding balance insurance brochure

Cover your loved ones in the event of the unexpect

Find out more about Baloise's outstanding balance insurance for your loan

The "Right to be Forgotten" in Luxembourg

On 29 October 2019, Bâloise Vie Luxembourg signed the "Right to be Forgotten" Agreement with an effective date of 1 January 2020.

The objective of the "Right to be Forgotten" agreement is to facilitate access to outstanding balance insurance for people who have presented an aggravated risk due to a cancerous pathology, and, under certain conditions, a hepatitis C viral infection or an HIV infection.

If you have any questions, please contact our department at contrats.vie@baloise.lu.

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