In contrast to the normal life mortgage, the capital with this type of mortgage is built up in an investment insurance policy. The loan is repaid at the end of the term or in the event of the earlier death of the insured person(s) with the payment from this life insurance policy. With this form, tax-free capital is also built up and you benefit from the interest deduction.

Advantages compared to the normal life mortgage

• with a good investment, more is built up than is necessary to repay the mortgage;
• the policyholder determines to a certain extent how his premiums are invested;

Disadvantages compared to the normal life mortgage

• investment risk, yield may be lower than expected at maturity. In this case, one is left with an unforeseen residual debt;
• often higher cost structure;