Cancel life and pension insurance for higher repayment?

Hello everyone,
the financing for our dream house is secured.
However, we are now wondering whether it makes sense to increase the monthly repayment by suspending/canceling our life insurance and pension insurance (possibly also Riester insurance).
Currently, 550 euros per month go into these insurances.
Basically, our house represents our retirement provision after it is paid off. We would be finished with the repayment much, much faster by suspending/canceling the payments. Or would you continue to pay?
I am curious about your opinions!
Oh yes, the current surrender value of all insurances is about 20,000 euros. However, we would then each take out a risk life insurance policy for both of us for 100,000 euros each.

The question is not easy to answer. In addition to the death benefit in the life insurance, the guaranteed interest rate and the loss in case of cancellation must be considered. Are you actually repaying the financing with the saved EUR 550 or does the money possibly end up in the general household budget? I personally would not cancel my two existing life insurances, as they date back to 1990 and 2000. They still have a great guaranteed interest rate!

You should ask yourselves whether you can/want to live only on the statutory pension in retirement or not. Keyword pension gap. What use is the house if the usual lifestyle is no longer possible in old age?

Hello everyone,
the financing for our dream house is in place.
However, we are now asking ourselves whether it makes sense to increase the monthly repayment by suspending payments/canceling our life insurance and pension insurance (possibly also Riester insurance).
Currently, 550 euros per month go into these insurances.
Basically, our house will serve as our retirement security after the loan is paid off. We would be finished with the repayment much faster by suspending payments/canceling. Or would you continue to pay in?
I am curious about your opinions!
Oh yes, the current surrender value of all insurances is about 20,000 euros. However, we would then each take out a term life insurance for both of us, each over 100,000 euros.

Hello,

cancelling the life insurance to include the money as equity could definitely make sense for older, tax-advantaged life insurances. You should calculate for yourselves what interest advantage you have. Suspending contributions to pension contracts like Riester I do not consider sensible either due to the subsidies and gaps. Especially since you can also use them for follow-up financing.

But it should be approached with common sense. In any case, it is advisable to take out the loan amount partly or completely as term life insurance if you cancel the existing life insurances!

However, we are now wondering whether it makes sense to increase the monthly repayment by suspending the premiums/canceling our life insurance and pension insurance (possibly also Riester insurance). Currently, 550 euros per month go into these insurances.

oh yes, the current surrender value of all insurances is about 20,000 euros. However, we would then each take out a term life insurance for both of us of 100,000 euros each.

When I see that you are currently paying 550 euros/month and the surrender value of all insurances is 20,000 euros, I think that the contracts have not been running long enough for a cancellation to lead to a tax-free payout.
Do you possibly have disability insurance integrated into these policies? If so, I would steer clear of that.

I am also planning to include an ongoing life insurance (since 1999) in my financing. However, here it is an additional repayment option at maturity (only taking the guaranteed sum). My life insurance also includes a significant portion of my disability insurance, which I do not want/cannot forgo. Although I am rather opposed to repayment substitutes (life insurance or building savings contracts), I consider it sensible in my case for the reasons mentioned. Everyone must decide individually.

Certainly, you can also have disability insurance as a risk insurance (that is how the second part of my disability insurance runs), but you might now be older/sicker, etc.

Hello Projekt2013,

I agree 100% with my predecessors.
You have to decide that for yourselves.
There are advantages and disadvantages.
In my opinion, the disadvantages outweigh the advantages, so I would stay away from it.
However, to check this, there is the possibility to carry out a fairly precise pension calculation
to see how much capital you will need at today's purchasing power (please remember inflation) to live/survive as a retiree.

Alternatively, I would definitely not increase the repayment in a classic annuity loan,
but rather save into a building savings contract so that you can secure the interest after the fixed interest period (if you have not fixed it until the end) and alternatively access the balance if any emergency situation arises.
OR
invest in another form of savings.

Have fun in your home.

Best regards
André