Protect your home loan with life insurance
Grief does not stop daily life and the costs that come with it, and people often want to stay in a home to which they have grown attached. However, only 8% of people in Finland have life insurance* (Study by ETLA, 2022), which means that most people in Finland have not insured their own life or family to protect their financial situation.
When you have a home loan, insurance protects you against life's surprises. By getting life insurance to protect your home loan or otherwise financially protect your loved ones, you will have immediate peace of mind and financial security for your loved ones. You will know that the insurance benefit can be used to repay the home loan, for example, which will allow your loved ones to continue their daily lives while grieving. Life insurance allows you to protect your home loan's repayment and provide financial security for your family and reduce the stress caused by the costs of daily life should the worst happen.
When you have life insurance in the right amount to protect the repayment of your home loan in the event of your death, your family does not necessarily need to move out of your home. When determining the insurance benefit, it is good to consider the amount of your home loan and other loans, your annual gross income, and an amount of 20,000 euros per dependent child.
The insurance benefit will be paid quickly to the beneficiaries
Life insurance protects your financial situation and allows you to ensure your home loan's repayment and the continuity of daily life. The insurance benefit will be made available immediately to your designated beneficiaries. The insurance benefit is not tied to a home loan, so the beneficiaries of life insurance can spend the insurance benefit as they wish. Alternatively, you can protect your financial situation by getting loan protection insurance, which is tied to a loan.
Loan protection insurance or life insurance?
There are many ways to protect a home loan, and you might find yourself wondering whether loan protection insurance or life insurance would be the best option for you. Loan protection insurance protects you against unemployment, incapacity for work, and permanent disability or death caused by an accident. Loan protection insurance is tied to a specific loan. The monthly payments of loan protection insurance help pay instalments on the loan, and the lump-sum compensation paid out in the event of permanent disability or death caused by an accident can be used to pay off the remaining loan or part of it. Loan protection insurance can therefore be an invaluable help to your loved ones in the event of your death. The death benefit paid from loan protection insurance is tax-exempt to the extent that it is used to pay off the remaining loan principal.
