Under-funded Mortgages
It is always wise to keep a close eye on any investment associated with property purchase, however many people pay little attention to the performance or structure of the policy they took out when they bought their home, perhaps because it only forms a small part of the family budget.

To have a realistic chance of achieving the longer term growth objectives of a mortgage related capital repayment strategy, it is vital that any investment offers the maximum opportunity for growth. Costs are a key area of this and there has been much in the Dutch Press recently surrounding the very high costs and poor value for money offered by most Dutch insurance products.

The products we offer are fully compliant with our Dutch regulators and are extremely cost effective when compared to what is available on the domestic market. Literature is available in English and Dutch.

Contact us today; it’s worth exploring your options.

Under-insured Mortgages
Term Assurance can be particularly useful for mortgage holders in The Netherlands. This is because most lenders only insist on life cover for the “risk” part of a mortgage loan – that being the difference between the total mortgage amount and the auction value of the house. As an example of this;

Question:- Would the surviving spouse be able to afford three-quarters of your current monthly mortgage payments without the main bread-winners income? If not, you may need to consider additional cover.

Whilst this arrangement may be secure for the lender it is perhaps not the most reassuring situation for the customer. In the event of the death of the main earner for a joint mortgage, the above example shows that the surviving spouse would still be left with nearly three-quarters of the loan amount to pay each month in order to keep the family home. In our experience, expatriate families often have one main earner with a lower (or zero) income from the spouse. Add to this school fees (no longer paid by the employer of the decease spouse) and other living costs, it becomes clear that additional cover may need to be considered.

If your insurance policy is no longer effective if you move to another country but still keep the property, it may be worth considering internationally portable cover that will remain in force wherever you are living at the time of a claim.

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