Protected for life

Death, the last milestone of life. Across the world, every culture has its own traditions. In Indonesia, for instance, there are days of feasting and drinking in honour of the deceased, a ‘last hurrah’ as it were. In Belgium, we are a little less exuberant. Traditional funerals are usually serene services where people dress in black and offer their last respects. So, for us, death is a prospect that certainly doesn’t make you happy. Especially with the thought of having to leave your loved ones behind. And the last thing you want is for them to be left in a financial mess because your income falls away and they have to continue paying off your loan. Fortunately, there is life insurance, or very specifically for the loan, debt insurance.
 

Debt insurance

Debt insurance is one form of life insurance, specifically designed to repay the remaining (mortgage) loan, i.e. the balance of the debt, if the insured person dies early. As a result, the heirs are not burdened with the remaining debt.

The insurance premium is based on several factors, such as the capital to be insured, your age, and the state of your health at the time of conclusion. You almost always have to fill in a medical questionnaire so that the company can assess the risk of death. Many banks also require debt insurance in order to cover themselves against payment problems after death.

Insured against uncertainty

Although a significant proportion of the population takes out debt insurance, research has shown that there is a lack of awareness about the details of this insurance and the protection it offers. Expats, take note here: most debt insurance policies do not provide global cover. If you move outside Europe, for example, many debt insurance policies become invalid.

Also, more than half of the respondents were unsure whether debt insurance alone would be enough. After paying off the debt, there is generally not much left and you never know what life has in store. Suppose you contracted a chronic illness just as your children were starting college, and moving into digs. You want to increase your death cover, but can no longer do so due to your medical complications.

Step by step

Since 2023, Expat & Co has completely overhauled its life insurance policies. Their Milestone Principle® is a unique element. It allows you to decide in advance what increases/decreases you want to make at each milestone in your life. The milestones are predefined, such as marriage or cohabitation, a birth, buying a family home, your partner quitting work which lowers your joint income, or your children starting college which increases your monthly expenses. Upon reaching these milestones in your life, you then have a certain period (30 days) in which you can use the opportunity to increase your capital without a medical examination. After all, you passed this examination at the start of the contract, for the maximum insurable capital.

And you want to take responsibility by increasing your death cover, but a chronic condition throws a spanner in the works. Because you have planned all these things in advance in your Milestone Insurance, you don't have to undergo another medical examination with every increase. That already took place at the start of your contract, i.e. before your chronic condition came along. You can thus build up your contract step by step, and also phase it out gradually, according to your own needs at the time and regardless of your health condition. This is how we restore the peace of mind you should expect with life insurance!

More info on Expat & Co's health insurance at www.expatinsurance.eu