For many people in Germany, the dream of owning a home comes with a mortgage. Property loans are long-term commitments that can run for decades. A lot can happen in that time: a sudden illness, an accident, losing your job or the death of the main earner can change a family's finances completely and put loan repayments at serious risk. Mortgage protection cover (Baufinanzierungs-Schutzbrief) gives dependable protection in such situations.
In Germany, property loans are usually secured by land charges (Grundschulden) or mortgages. That means that if the borrower can no longer pay the instalments, the bank has the right to seize and sell the property. In that situation a family can lose its home, which is exactly what the mortgage was supposed to secure in the long run. Mortgage protection can ease this situation: it pays a monthly benefit for a limited time in case of inability to work and a lump sum on death.
Mortgage protection cover is a protection solution that can cover several risks that threaten the repayment of a property loan. These can include term life insurance (Risikolebensversicherung), occupational disability cover, unemployment cover or a combination of these. The exact range of benefits varies by provider and product design. The right combination depends on your individual life situation.
Mortgage protection cover is for anyone financing a property or wanting to secure an existing loan. It is especially important for sole earners, families with children and people who fund their standard of living largely from regular income. The more you depend on monthly income, the more important solid protection becomes.
When choosing the right cover, check which risks are covered, how high the sum insured is, whether the policy is adjusted as the loan develops and what health requirements apply.
Together with you, we develop the right protection strategy for your mortgage, so your home stays safe even in the worst case.
Mortgage Protection Insurance Benefits
In case of inability to work: Monthly pension payment after a waiting period of 42 days. Payment for up to 24 months per case, up to 60 months for repeated incapacity. Benefit amount 50 to 2,500 euros a month. Immediate cover for the consequences of an accident (no waiting period).
On death: A lump sum equal to 60 monthly benefits (incapacity pension).
In case of unemployment (optional): Unemployment pension after a waiting period of 1 month. Max. 24 months, up to 60 months for repeated unemployment. For employees: as long as unemployment benefit I (ALG I) is paid.
General terms: Waiting period 6 months (exception: accidents, which are covered immediately). No health check. Policy term 10 to 35 years. Entry age 18 to 57, end age 67. You can take out cover up to 12 months after the loan agreement. Benefit amount and duration can be changed during the term.
