Prepare for possible unforeseen events after buying a property to protect your loved ones
Taking care of your family and your partner is probably one of your main concerns. However, an accident, illness or death can cause significant financial hardship, and it's important to be prepared. Here are some things to consider to protect your family and your partner.
Identifying risks
The first step in protecting your family and partner is to identify the risks you face. If you have a mortgage or other property loan, the death or incapacity of the borrower can make it difficult to pay your instalments. This could even lead to the forced sale of your home.
The risks are particularly high in the following cases:
- An early withdrawal from the pension fund partly finances the property;
- The loan-to-value rate is higher than for a 1st mortgage (66.6% of the value of the property);
- Only one person earns the main income.
Taking out risk insurance
To protect yourself against these risks, taking out risk insurance on the part of your mortgage debt is a good idea. This will enable you to continue paying the loan even if you face a difficult situation.
Protecting your family and your partner from financial hardship is crucial. Considering the risks, you can protect your family if something happens to you. Please contact us to find out more about the solutions available.