Is it wise to take out home insurance?

Imagine that unforeseen circumstances cause you to lose your job or fall ill for a long time. Will you then have sufficient financial resources to continue paying your living expenses? Housing cost insurance can protect you in these situations. In this blog, you will discover exactly what home expense insurance entails, how it works and why it can be a valuable addition to your financial planning.

What is housing benefit insurance?

Housing benefit insurance is insurance that covers your monthly mortgage payments if you are temporarily unable to pay them. It provides financial security and prevents you from getting into trouble if your income falls away due to unemployment, disability or the death of your partner, for example.

Unemployment and disability protection

If you unexpectedly lose your job, the insurance will take care of your mortgage payments for a certain period of time so that you don't get into financial trouble. The same applies if you are unable to work due to illness or an accident. The insurance then provides for the payment of your monthly mortgage payments, so you can focus on your recovery without worrying about your living expenses.

Death risk coverage

Term life insurance can also include death benefit coverage. This means that if you or your partner dies, the insurance can pay off the remaining mortgage amount. As a result, your surviving partner is not left with a high mortgage debt and can stay financially taken care of.

How does housing benefit insurance work?

Before taking out a home insurance policy, you must provide some information, such as your age, occupation, income and medical history. This will be used to determine your eligibility for the insurance and the premium amount you have to pay. The premium can vary based on several factors, such as the amount insured, length of coverage and your personal situation.

The sum insured is the amount you will receive if you claim the insurance. This can be equal to your monthly mortgage payments or a percentage of them. The duration of coverage is the period of time during which the insurance will pay your mortgage payments. This can range from a few months to several years, depending on the policy terms.

To close or not to close?

Housing insurance offers you peace of mind and financial protection during uncertain times. It can help you maintain your lifestyle and meet your financial obligations, even if you are temporarily unable to work. With unemployment, disability and death coverage, you can protect yourself and your loved ones from potential financial hardship.

Yet home expense insurance is far from always necessary. Do you have sufficient savings? Can you make ends meet with only your partner's income? Or can you easily save on other expenses? If so, you may not need home insurance. Sometimes you can make use of a collective insurance through your employer or you are already insured by default.

Our financial advisors are here for you

Are you still unsure about taking out home insurance or do you have any questions? Then please contact us. Our advisors will look at your personal situation and wishes with you. This way they can help you find the best insurance.