MyCreditProtection, outstanding balance insurance for your mortgage loan

Still have questions?

• What is outstanding balance insurance?

  Whether you are buying your main residence or second home, making a rental investment, or financing movable or business assets, these projects often require a loan. The lending institution will then usually require you to take out outstanding balance insurance.

  This insurance guarantees full or partial repayment of the loan in the event of death or disability. 
  There are two types of cover: 

  • Essential cover for death risk 
  • Additional cover to protect against more risks. 
     

• How is outstanding balance insurance calculated?

  The premium amount is calculated based on: 

  • the loan amount
  • the loan interest rate
  • the loan term
  • the age and state of health of the persons to be insured 
     

• I’m buying my first apartment. Do I have to take out the outstanding balance insurance offered by my bank?

  No! You are completely free to choose your outstanding balance insurance from the provider of your choice – this is your right.
  Although your bank will usually offer its own insurance when you take out the loan, you are under no obligation to take it out. This freedom of choice allows you to compare the offers on the market and select the cover best suited to your profile and budget.
  With MyCreditProtection, you benefit from personalised protection, flexible payment terms and dedicated support, all with no additional fees.
   

• What happens to my loan if I pass away?

  If you were to pass away during the loan term, repayment would be made to the institution with which you took out your loan. AXA pays the loan balance up to the insured amount. This means your family can continue to enjoy the property with complete peace of mind.

• And if I became disabled?

  Thanks to the supplementary decreasing capital cover, you can be certain that payment of the insured capital will be made to the beneficiary bank in the event of total and permanent disability following an accident or illness.

• The medical questionnaire for outstanding balance insurance

  The medical questionnaire is a detailed form that you must complete when applying for outstanding balance insurance. 
  Its purpose? To allow your insurer to assess the risks associated with your state of health at the time of taking out the policy in order to determine:

  • whether or not you are accepted under the policy;
  • the amount of your insurance premium;
  • any exclusions from cover. 

  This document forms the basis of your insurance policy and triggers your liability. It is therefore essential to complete it with the greatest care, providing all necessary details.
  Find out more.
   

• Tax deductions for outstanding balance insurance

  If you pay the insurance for your mortgage loan as an annual premium, the premiums are deductible each year under Article 111 L.I.R (Luxembourg Income Tax Law). The maximum deductible* annual amount is €672 per household member, including children.
  If you pay this insurance as a single premium, you are entitled to an exceptional increase in the ceiling.

  Increase in the annual deductible limit per taxpayer	Up to 30 years old	From 31 to 49 years old per year of age	50+ years
  Childless	6000 €	+ 480 €	+ 15600 €
  Bonus per child	+ 1200 €	+ 96 €	+ 3120 €

  
  This increase is granted only if the mortgage loan relates to your main residence.

  Please note: if two spouses or partners are insured, the amounts indicated above may be doubled. However, the additional amount per child is granted to one parent only.