Need follow-up financing with a short term

If it is still an old life insurance policy with 4% guaranteed interest tax-free, I would not withdraw it. Extend the loan for 5 years at under 3% interest

I understood it so that the maturity benefit is due. You cannot just leave it there.

I understood it as the maturity benefit is due. You can’t just leave it unpaid.

The contract has a flexible maturity phase and December 30, 2026, is the earliest date at which the benefit can be drawn. And yes, purely numerically it can (but does not have to) make sense to extend the loan by 5 years and draw the life insurance 5 years later; but. The desire to be debt-free is quite strong. If the conditions for the extension are reasonably acceptable, then (exceptionally) the gut feeling would indeed be stronger than the head feeling. Thanks to nordanney: I just inquired at the bank, indeed the €STR is increased by 6.5 percentage points – according to the bank this is the rule if nothing else is agreed. I will now receive from the bank a "real" extension offer for the 6 months, and based on the figures a decision will then also be possible.

The desire to be debt-free is quite strong.

Regardless of whether you repay the financing or not, you do not have more or less debt in total. You don’t find the feeling of having no assets anymore (= surrender values life insurance) to be bad?

I am now receiving a "real" extension offer from the bank for the 6 months, based on the numbers a decision will then also be possible.

Then the surcharge will be reduced by at least half.

The desire to be debt-free is indeed strong.

That is mental accounting or, as a footballer once said, from a feeling perspective, a better feeling. Freely available money also has advantages, especially at the beginning of retirement.

That is mental accounting or, as a footballer once said, a better feeling emotionally.
freely available money also has advantages, especially at the beginning of retirement

But wouldn't it be nice exactly then to cash out the life insurance and suddenly have 75,000, then probably 100,000 EUR? You could take the world trip immediately...
Instead of paying off the house and then having 400 EUR more pension. For the world trip, you first have to save 2 or 3 years of pension.

But wouldn't it be nice precisely then if you cash out the life insurance and suddenly have 75,000, then probably 100,000 EUR? You could go on the world trip immediately...

It's at least 7-10 years until 75k becomes 100k (3%/4% interest - whatever the OP gets). I can also finance 70k with a bullet loan. Then I pay about 25k interest in 7-10 years. Then I repay the loan with the 100k maturity amount and have 25k left over. Oh yes, if I repay the loan now and take the saved installment (interest only), after 7-10 years I have saved the same amount and can make a trip for 25k just as well. But I am more flexible and could already take a vacation from the savings in between. Your calculation is unfortunately a simplistic one.