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Credit protection insurance covers your mortgage in the event of death or disability

Created by Cardif Lux Vie and distributed by BGL BNP Paribas, credit protection insurance is a life insurance policy attached to a loan. It is valid during the term of the loan and insures all or part of the amount borrowed (depending on the amount insured).

In the event of the borrower’s death or disability, credit protection insurance guarantees repayment of the loan based on the amount insured.

  • Personalised solution depending on your situation:
    • Choice of frequency: a single premium, paid monthly, quarterly, semi-annually or annually,
    • Choice of capital amount you wish to insure,
    • Different guarantee options.
  • Possibility of reusing this insurance for another loan.

An insurance solution for every loan!

There’s a suitable loan for every project. And for each loan, a specific insurance offering. These insurance solutions all have one thing in common though, and that’s that repayment of the outstanding balance in the event of death will be covered by the insurance company.

  • Credit Protect is a hassle-free insurance solution with a single premium, enabling you to guarantee the repayment of your personal loan,
  • Protect insurance guarantees the repayment of your OptiLine credit line,
  • Reserve Protect insurance guarantees the repayment of your Réserve Privilège cash reserve.

Secure your loans wth credit protection insurance

Emma took out a €500,000 mortgage with a 25-year term to buy an apartment. She decided to take out credit protection insurance covering her entire loan. If anything happens to her, the loan repayment won’t be transferred to her son, Arthur!

Did you know? Credit protection insurance premiums are tax-deductible.

For Luxembourg residents, and those treated as residents, premiums paid under mortgage protection insurance are tax-deductible. What’s more, the deductible limits are higher if the insurance is paid as a single premium!

Frequently asked questions about credit protection insurance

  • What is credit protection insurance?

    Credit protection insurance makes it possible to secure a set capital amount for a fixed term. This amount may correspond to the full amount of your loan or to a part of it. In the event of death or disability of the insured person before the policy matures, the insurer will repay the contractually insured amount.

    The sum insured is determined when the policy is first taken out and will decrease based on the term of the policy.

  • Is credit protection insurance mandatory?

    Credit protection insurance is optional, however the bank may require it as a condition for granting a loan.

  • Am I required to insure the entire amount borrowed?

    A home loan is a serious commitment, the repayment of which is passed on to your heirs in the event of death or disability. A guarantee covering 100% of the capital borrowed is the best solution for ensuring maximum security over the loan.

  • How do I pay for credit protection insurance?

    You can pay for your credit protection insurance in two ways:

    • As a lump-sum (single premium),
    • In instalments (monthly, quarterly, semi-annually, annually).
  • How is my insurance premium calculated?

    Premiums are calculated on the basis of the amount insured, the contract term, the type of loan, your age and health status. You may be asked to undergo a medical examination to determine your insurance premium amount.

Coverage of mortgages for Belgian residents is not possible. Tax deductibility varies based on the personal situation of each client and is subject to change. This product from Cardif Lux Vie is distributed by BGL BNP Paribas, Cardif Lux Vie’s insurance agency, entered in the register of insurance intermediaries under number 1996AC001.