Protection of the spouse in construction financing

How exactly does cross-insurance work? I.e., when "you" insure "his" life in your favor (and/or vice versa)? Would someone like to briefly explain this with an example?

For my term life insurance, which we took out when our first child was born, with me as the sole earner, it is like this (at that time there was no mortgage):
Policyholder: me
Insured person: me
Beneficiaries: the wife living with me as my spouse and my children in equal shares.

How should we do this correctly now for the mortgage? Correctly in the sense of simple/faster processing and minimal tax burden :P.

Insured: She Insurer: He Insured: He Insurer: She Topic finished.

How exactly does cross insurance work? So, if "she" insures "his" life in their favor (and/or vice versa)? Would someone briefly explain this with an example?

For my term life insurance, which we took out when our first child was born, with me as the sole breadwinner, it is like this (at that time there was no mortgage):
Policyholder: me
Insured person: me
Beneficiaries: the wife, who then lived with me as my spouse, and my children in equal shares.

How do we do this correctly for the mortgage now? Correctly in terms of simpler/faster processing and minimal tax burden.

What does the tax burden of owner-occupied property have to do with insurance? Okay, a term life insurance is considered a special expense, but you need to have significant annual special expenses for it to make a difference.

We took out a family term life insurance. Whether my wife or I die does not matter. It insures the partner and/or the children, i.e., debt-free.

What I would advise you is to review existing insurances. Do you have a term life insurance or capital-building insurance? Then inquire and take out a policy with a reputable company. Very important to answer the health questions truthfully.

what does the tax burden of owner-occupied property have to do with insurance coverage? Yes, okay, a RLV is counted as special expenses. but you would have to have significant annual special expenses for it to be beneficial.

This is presumably about inheritance tax. Depending on the amount of the insurance (especially for sole earners), the value of the partially paid-off house, and possibly other assets, one can also exceed the exemption limits. The simplest thing here is to restructure the insurance.

What speaks in favor of securing your partner? The one you love and with whom you possibly have children?

Absolutely EVERYTHING! But you should do it properly, securing the financing with life insurances on both sides, HIM and HER! Why? What if she is no longer there and you have children? Who will take care of them, can he still work 100% then? So insure both. Then you shouldn’t take just any insurance, clarify with the bank what happens with the financing when the insurance takes effect? Prepayment penalty? Some banks have protections where this prepayment penalty does not apply, otherwise there is a risk that the money market has changed and you have huge prepayment costs that will then consume the insurance amount.

Therefore, you should insure, unless you really have enough capital; if you insure, get proper advice and put it down in writing.

you say that i write confusingly, but bodo is certainly worse

it doesn't matter if someone dies. if one dies and the other gets a large sum of money, he can simply continue paying his installments with the money and calmly consider how to proceed. you don't have to insure the whole house. with €100,000 you can fully finance several years, or partially finance even more years. of course, if you want to hit the "jackpot" (one dies, the other has a "good" life), you naturally have to insure more.
depending on how you look at it and prefer it. we just want to reduce the default risk and insure about 50% of the whole. if one dies, he has thereby contributed his part to the house.