Outstanding balance due insurance (SRD) is a type of life insurance or death insurance that covers a chosen amount of the mortgage loan in Luxembourg. This insurance protects the spouse, the family or the bank in the event of death before the repayment of the loan. The insured capital is degressive, that is to say, it follows the repayment curve of the loan.
Who can take out outstanding balance insurance?
The Outstanding Balance policyholder can choose to take out insurance alone or with a second policyholder.
What does outstanding balance insurance cover?
This insurance covers the insured in the event of death. Additional guarantees can be taken out and extend to total or partial disability.
Payment of the premium and tax benefit in Luxembourg
The payment of the premium can be made in several ways:
- Single premium
- Annual premiums staggered over 2/3 of the duration of the contrac