Outstanding balance insurance
Protect your loved ones, without overpaying.
Outstanding balance insurance repays all or part of the capital still owed to the bank in the event of the borrower's death. It protects your family and the property.
Outstanding balance insurance (ASRD) is a life insurance linked to your credit: if the insured borrower dies, the insurer repays the remaining balance of the loan (according to the insured share), sparing your loved ones from having to shoulder the monthly payments or lose the property. It is not legally mandatory, but lenders very often require it and sometimes make the rate granted conditional on it.
Key point: in Belgium, you are free to choose the insurer. You are not required to take out the contract offered by the bank — an external contract is often cheaper for equivalent guarantees. We compare the offers on the market (rate, insured share, guarantees, medical questionnaire) to cover you effectively without overpaying.
Your questions, our answers
Is outstanding-balance insurance mandatory in Belgium?
Legally no, but almost all banks require it as a condition of the mortgage. It repays the outstanding capital in case of death, protecting your family and the lender. Good news: you are not obliged to take it with your bank — putting it in competition often saves hundreds of euros.
100/100 or 50/50 coverage: what should a couple choose?
With 100/100, the loan is fully repaid at the first death: maximum protection, higher premium. With 50/50, each partner only insures half: the survivor keeps paying their own half. The right balance depends on the income gap between partners and the budget — a broker prices the variants (including 70/30 or 100/50).
Can I switch outstanding-balance insurance during the loan?
Yes, at any time — subject to the bank approving the new policy (it is usually pledged). Note: the premium depends on your age and health at the time of the switch, so the gain is mostly real in the first years of the loan or if the original policy was expensive.
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