Protection of the spouse in construction financing

Hello,

unpleasant topic, but one should think about it.
If something happens to one spouse during the financing of a house, the house should not be lost because of that.
Now I "asked" Google and read something about [Restschuldversicherung] or [Risikolebensversicherung].
One source says such insurance makes sense, another says the insurances are too expensive and not worthwhile.
Now I wanted to ask for your opinions, possibly recommendations.

Thank you very much and best regards
Jochen

An insurance should cover existential risks. A term life insurance is not expensive and can cover such risks well. In my opinion, highly recommended. Residual debt insurances are probably always more expensive, unless one has problems obtaining a term life insurance (pre-existing conditions).

Term life insurance is one of the extremely important insurances for the protection of family members. This applies all the more if the main earner fails. But it is also important for the main earner if the partner dies and there are still children to take care of. Then the full-time job might possibly not be sustainable and the standard of living decreases.

A term life insurance on [verbundene Leben] (both spouses) is, in my opinion, one of the most important insurances overall. In addition, liability insurance and good disability insurance are absolute basic insurances.

It is always a question of what kind of security one needs.

If you still own 5 other properties or have an appropriate cash reserve, then insurance for this reason alone is pointless.

If you feel the need to fully or more or less cover the loan amount, then a term life insurance policy definitely makes sense.

Whether this is with a level or decreasing coverage amount is a matter of taste. The extra cost for level coverage is marginal. I would always prefer a classic term life insurance over credit insurance or something similar. The administrative costs are usually lower there.

However, such insurance only protects against one risk (death). Unemployment, illness, accident, disability are not covered.... if you want to insure all of this, you quickly lose a lot of money. So it really depends on need and desire.

A term life insurance over 200,000 EUR for 30 years for a 30-year-old would (without checking) cost about 20 euros/month (1 euro/workday or 240 euros/year or 7,200 euros/total).

Whether that is expensive or cheap is up to you to decide and whether it is worth it to you.

The nasty thing is that the term life insurance is perceived as an unnecessary burden during one's lifetime and one probably does not experience the state of usefulness as the "insured person".

It is also nasty that the tax office hits hard if you are not married. However, a will must exist beforehand, otherwise there is nothing at all. That is why unmarried builder couples insure each other. She insures his death, he insures her death. Thus, the policyholder is also the beneficiary. There is no inheritance, no will games. Only the "queasy" feeling that one could suddenly die if the other needs money *hrhr* You also don't have to insure the entire house sum right away. For example, our bank advisor recommended €100,000. With that, you can easily continue paying the installment for several years and calmly consider how to proceed. As Voki already wrote, the insurance is pointless until you yourself are dead.