Securing construction financing with RVL

It doesn't always have to be fully secured. For example, I also think the full loan amount is too much. With us, we are both insured for €100,000 over 25 years. That costs us €40 per year per person.

I agree. Why does the house have to be paid off in one go as soon as one person dies? Then as a housewife or househusband you are worth more dead than alive :eek: Besides the RLV, there is also a half-orphan's pension for the children.

The topic is still pending with us as well. I would never have thought of insuring the entire loan amount of 450k. 100-150k is enough to have some peace for a few years and/or to fare better in case of a possible sale than just getting away with a scratch. Especially since, if necessary, it would (initially) also work without the second person, as we could reduce the repayment of the main component. And yes, I think one shouldn’t make their own death too attractive :p I quite like watching Medical Detectives ;)

Well, the thing is that a term life insurance is relatively cheap because the probability of dying young nowadays is simply very low. But if it does happen, it really isn't so bad if at least you don't have to worry financially. Whether you then use the money to pay off the house, comfortably finance the children's studies, or buy a Ferrari out of grief to go on joyrides with the new lover is up to the individual case. It's just a way to cheaply sweeten a very unlikely but all the more drastic risk. It doesn't give me a bad feeling to know that my family is sitting in a paid-off house plus has some extra bonus in case I actually burst a vessel in my neck from anger.

I don't understand. Why do you want to cover the house loan with the RLV instead of putting the annual contribution into the special repayment?

When I pass away, the house will be inherited by my daughter, currently 10 months old and thus nearly two decades away from earning her own income. Whether there are €300,000 or €295,000 of debt left is completely irrelevant; liquidation will be necessary if no larger sums come in from elsewhere. In any case, there’s not much to gain from special repayments these days. Interest rates are low, so the shortening effect is also moderate.

When I pass away, the house will be inherited by my daughter, currently 10 months old and therefore nearly two decades away from having her own income. Whether there are 300,000€ or 295,000€ of debt left is completely irrelevant; liquidation will be necessary unless larger sums come from elsewhere.

The surviving parent or legal guardian will rent it out or sell it accordingly. Problem solved. No income of the daughter is necessary. If the debts exceed the value of the property, the inheritance will be renounced.
Once she is 18, she can sell it or continue renting it out. Children really don’t need their own property. They are better off without it.

The remaining parent or the legal guardian will rent or sell it accordingly. Problem solved. The daughter does not need her own income. If debts exceed the value of the property, the inheritance is renounced. As soon as she is 18, she can sell it or continue renting it out. Children really don't need their own property. They are better off without it.

I agree with you that having your own property can be more of a burden for children because ownership often comes with obligations. From my point of view, there is nothing against a sale; she still has the money from the RLV and can use it for starting her own life. On the topic of the death of a spouse: When I see how often our daughter was sick during her first year in daycare, we had to pick her up and take care of her at home, I honestly cannot imagine working full-time as a single parent. I can relatively well imagine single parenting with a child while working part-time. But then the money is no longer enough for the apartment – also a problem. That is why we chose the RLV, to relieve the other person of the burden of the property financing in the event of death and to be able to fully concentrate on the child.