Outstanding balance insurance

Outstanding balance insurance is a temporary life insurance linked to the mortgage. Upon the borrower's death, the insurer repays all or part of the remaining capital to the bank, protecting the spouse and heirs. In Belgium, it is not legally mandatory but almost always required by banks. The premium depends on age, health, insured amount, and duration. It can be paid as a lump sum (single premium) or periodically. Premiums benefit from a tax advantage under the federal long-term savings scheme (30% tax reduction) or regional schemes. It is advisable to compare offers as price differences between insurers can reach 50%.