Term life insurance: Sum insured

We also chose an amount that is 50,000 above the loan amount. We have a decreasing policy over 30 years. The payout amount is always significantly above the outstanding debt. Thus, in case of emergency, the partner and child have some leeway. The health questions should definitely be answered honestly and completely. I discussed them with my doctor. And with a direct insurer, this insurance was even quite affordable.

The bank demanded from us an RLV each time of approximately 40% of the loan amount. That should be the loss the bank would suffer in a forced sale. The property would still be there... If you want to keep the property, you can go up to the loan amount.

Also here again: Good tips! Thanks!

The bank required for the subsequent rehabilitation loan of 60k euros an RLV of over 100,000 euros. Total loan amount 210k. The rest is secured by the land charge. It only had to be concluded over the fixed interest period, i.e., 5 years. We have taken out an RLV that pays an additional 100k in the event of an accident. The premium is 15 euros per month for smokers, so it doesn’t hurt much. A higher amount would have been pointless, since in the event of the loss of the only income, the insurance payment is seized by the social welfare office anyway (albeit in monthly installments). So why enter into more than necessary. I am not even sure that the residual debt can be paid off by the RLV, because I suspect that the total amount is pocketed by the state. Therefore, in my opinion, the whole thing only makes sense if, in the event of the death of the sole earner, the remaining partner can manage alone. You probably have to calculate that. I can clearly deny it. Therefore, we only implemented the bank’s minimum requirement.

Can I take out the RLV at any time, or do I have to follow a specific order?

For example:
Kreditvertrag -> take out the RLV -> Hauskaufvertrag beim Notar

or:

take out the RLV -> Kreditvertrag -> Hauskaufvertrag beim Notar

If you do not die in the meantime or have other reasons for refusal, you can still take out the RLV even after the purchase. It's all a matter of personal willingness to take risks.