What is an outstanding balance?

Loan: a temporary life insurance

The outstanding balance is a form of temporary life insurance which is concluded within the framework of a (mortgage) loan. When you dies prematurely, the outstanding balance ensures that the insured has not yet repaid amount of the loan is repaid to the institution where you borrowed. That way to make your spouse or heirs do not worry about the repayment of this sum. You choose what percentage of the loan amount you wish to insure.

What is an outstanding balance? A much needed security for the survivors!

In addition to this general definition, the outstanding balance has a number of other relevant properties. So take an outstanding balance by law not required , but highly recommended , especially when you take out a mortgage loan! To the question 'what is an outstanding balance' each insurer or lender will refer to the extra security you build in. Since nobody can predict the future, right?

Among others outstanding balance prevents your partner is in trouble because the monthly repayments of mortgage credit appears too high after your death. It is also true that there are so-called additional safeguards may be linked to an outstanding balance. These are basically completely independent insurance, but can only be taken in combination with an outstanding balance. The additional safeguard Disability can you and your family save a serious financial setback, if you become disabled because of a sudden illness or accident. A great advantage in times of social security offers less protection.

Outstanding balance: not only for mortgage loans

Outstanding balance is not restricted to mortgage loans. You can for any loan a close outstanding balance , as long as it meets a minimum to insure . For example, is an outstanding balance, you can take out an outstanding balance an option when buying a car, and even personal loans.

Conclusion? An outstanding balance is actually very simple to describe: financial protection for your dependents and heirs . Nobody can predict the future, but what we can, financially hedge your dependents and heirs to a worst case scenario ... Calculate your outstanding balance insurance premium!