With this letter of protection of the construction financing you guarantee the Mortgage payments for your property in case you get sick for a longer period of time or die. It is possible to graduate without health problems.
If you want to buy or renovate land or property, you will usually need a loan to finance it. The eradication of loan it can drag on for decades.
What happens to the loan installments if you die or have been alone on sick leave for a long time and therefore have less income? You have to keep getting paid. If you want to avoid having to sell the property in this case or even being forced to auction it is good to make sure in advance.
Works best with one term life insurance is one Health insurance is one disability insurance. Anyone who cannot obtain this insurance due to previous illnesses or for which the contributions are too high can now find an alternative in the letter of protection of the building financing (letter of protection Baufi) of the branch of Allianz Deutsche Lebensversicherungs-AG .
What is the Baufi letter of protection for?
With the Baufi letter of protection you protect yourself or your family temporarily. The benefits of the letter of protection are limited in time. This gives you or your loved ones valuable time to overcome financial bottlenecks, prevent an emergency sale, and refocus yourself.
Construction financing protection letter from Deutsche Lebensversicherungs-AG
Here you will find the most important information about the building loan protection letter.
You don’t have to answer any health questions after graduation. In exchange there is one waiting period 6 months, except for injury.
What does the construction finance protection letter do in the event of sick leave / incapacity for work?
If the insured person is on sick leave for more than 42 days, the cover letter assumes the payment of the agreed amount disability pension for the further period of sick leave. A maximum of 24 months for the same cause and a maximum of 60 months in total during the term of the contract.
What does the Baufi letter of protection do in case of death?
In the event of the death of the insured, the insurance cover pays the agreed pension to the survivors for 60 months.
What type of building financing can be guaranteed with the letter of protection?
Financing the construction …
- … must be aimed at the acquisition of a new plot of land or immovable property, regardless of whether it is used by the owner or by someone else;
- … can also be used to renovate a property;
- … it can be a subsequent loan if it is a question of changing banks;
- … it may serve a piece of land or a property that is not located in Germany;
- … can be done in any bank in Germany.
Who can insure?
Borrowers can make sure with the construction financing protection letter. Different borrowers can each withdraw their own Baufi letter of protection.
The minimum age for entry is 18, the maximum age for entry is 57. The entry age corresponds to the actual age within 6 months of the last birthday. After that you are considered one year older.
When can the construction financing protection letter be signed?
The conclusion of the Baufi letter of protection is possible from the loan application up to 6 months after the acceptance of the loan application.
Other “technical data”
- Insurance period: Minimum 10, maximum 35 years, limited to the overall duration of the loan;
- Duration of the Baufi letter of protection contract: Maximum up to the last age of 67 of the insured;
- pension amount: Minimum 50 euros, maximum 2,500 euros, limited to the monthly financing rate.
Price example for construction financing protection letter
Man, 30 years old, loan amount 200,000 euros, duration 20 years, monthly loan payment 800 euros (= insured disability pension), Monthly fee: 19.98 euros.
Evaluation of the Baufi letter of protection of the Deutsche Lebensversicherungs-AG
As mentioned at the outset, we recommend that you take out separate insurance policies to cover the financial consequences of incapacity for work, occupational disability and death. Because this is the best way to get tailored insurance coverage that you can flexibly design.
This can work even with pre-existing conditions. Or we check your insurability with an anonymous preliminary risk investigation before graduation. Or you will find it here Health insuranceone Term life insurance for construction financingor to one of the promotional offers for a Disability insurance without health problems.
From our point of view, this letter of protection is an option only if this is not possible or desired. After all, the temporary benefit for up to 60 months from such a contract is even better than having no protection at all.
We also believe that the construction financing protection letter is fundamentally suitable to supplement existing insurance policies that can no longer be adequate.
Make your request and let us advise you!