Outstanding balance insurance (often abbreviated SRD in Luxembourg) is often linked to a home loan. Its role is above all protective.
The principle
If the insured borrower dies during the term of the loan, the insurance repays all or part of the outstanding capital to the bank. Your loved ones keep the home without having to bear the burden of the loan alone.
Protecting the family is the primary aim. The fact that the premium may be deductible (see the dedicated article) is an additional advantage, not the purpose of the contract.
Share and cover
On a loan with two borrowers, the cover can be split (for example 100% on each person, or a different split). The right level depends on your respective incomes and your family situation.
Our role
As an approved Foyer agency, we help you calibrate the cover so that it truly protects your household, at the right cost.
General information, subject to legal and contractual conditions and your personal situation; to be confirmed with the ACD (Luxembourg tax authority) or a qualified professional.