“Request an advance on your group insurance”: how to take advantage in advance by buying a house | My guide

Many people have group insurance. It is an insurance contract that an employer stipulates for his employees and with which he saves for the supplementary pension. Additionally, employees can often choose to have part of their salary deposited into the insurance policy as well. When you retire, the saved amount is paid.

But building that group insurance also offers a number of other options.

Where can you find the best terms and interest rate for your mortgage loan? View the different home loans here.

Anyone who has worked for a certain number of years has already received a certain amount in their group insurance. That is called reserve. If the employee stays with his current employer, that sum will increase further in the coming years.

Those accumulated reserves are no longer lost. This is why it is possible to request an advance from the insurance company, which must in any case pay the reserves in retirement age. With most companies you can borrow about 70% of the accumulated reserves.

The possibility of requesting an advance must then be included in the regulation of collective insurance. You must also pay interest on the amount withdrawn. This can be done through an annual interest payment or a liquidation at the time of the payment of the supplementary pension capital.

The advance itself is deducted from the pension capital that you would otherwise receive. No mortgage is required. You also have the option of early repayment of the advances.

You can also opt for a loan with capital rebuilding. In that case, you only pay interest on the borrowed money during the term. The capital is then paid in a lump sum at the end of the trip, i.e. when the collective insurance is paid.

The risk is to lose your job and no longer receive group insurance with a new employer. That is why in this case the insurance company will take out a mortgage on your home. The duration of the loan is also linked to the start date of the legal pension.

Reading advice: Legal pension often not sufficient: you have to save so much for a carefree old age.

Finally, you can also use your collective insurance as an (additional) guarantee for a loan you would like to take out with the bank. It can therefore serve, for example, as an alternative to insurance of the remaining balance. It is not necessary to undergo a medical examination. If you die prematurely, you will receive the capital you have already accumulated at that time. Your heirs can then use it to repay the outstanding loan. The condition is, of course, that the accrued reserve is already sufficiently substantial.

Reading tip: Why you shouldn’t just take out your banker’s outstanding balance insurance.

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