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Insurance loan


Loan of the insurance company in the form of policy loans or mortgage loans. A condition for a mortgage loan is usually the conclusion of a capital life insurance, since the loan is replaced as fixed loan at expiration of the contract with the insured sum. The insured sum is usually smaller than the mortgage loan, since by the surplus participation the expiration achievement is higher than the insured sum. The height of the expiration achievement depends on the running time of the insurance and the actually gained net yield of the respective insurance company. Only the insured sum is guaranteed, not the expiration achievement.
Disadvantage: At running out interest connection period the height of the balance of debt is just as high as the origin loan. Thus the customer carries the interest rate risk for the entire loan amount.

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Contents: Insurance loan, loan, insurance company, mortgage loan, loan, insured sum, net yield, interest connection period, balance of debt, interest rate risk, loan amount, capital life insurance that Hamburg-Mannheim

 

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