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What exactly is outstanding balance insurance for your mortgage loan?

Outstanding Balance Insurance, or ASRD, is often purchased with mortgage or other credit and is part of life insurance.

Why take out outstanding balance insurance when you enter into a mortgage loan?

If you want to protect your loved ones (partner, children) in the event that you die suddenly, you can take out outstanding balance insurance when you take out a loan. Even if the outstanding balance insurance is not compulsory to obtain your mortgage loan.


It is often believed that outstanding balance insurance is only useful in the event of a home loan, but nothing is less true. Such insurance will also be particularly interesting with an installment loan (renovation loan, personal loan, etc.).

What exactly does outstanding balance insurance do for your mortgage?

Outstanding balance insurance always follows the repayment of your loan (housing). The insurer will (partially) reimburse the capital not yet reimbursed on your home loan if you die before having fully reimbursed the loan and your relatives will not have to worry about repaying your mortgage loan.

What does outstanding balance insurance cover?

Outstanding Balance Insurance coverage will determine the percentage of your borrowing charge that the insurer will reimburse if you die. The precise amount of this coverage will be entirely up to you. Nothing will therefore require you to have 100% insured.

What are the cover options for outstanding balance insurance?

You have a choice of different options.

100% coverage

In this case, the insurer will pay 100% of the insured and unreimbursed capital (from you in the loan) to the bank.

2 x 50% coverage

The insurer will pay 50% of the insured and unreimbursed capital if you and your partner are insured for 50%. The other half will therefore not be covered. If one of the two partners dies, the survivor will still have to repay half of the loan. The bank will then give you a new amortization schedule so that you know exactly how much you still have to pay each month.

2 x 100% coverage

If you opt for this coverage, your loved ones will no longer have to worry about the repayment of the loan. Do you want 100% comfort? This will undoubtedly be the safest solution.

Please note, several options will be possible with this type of cover:

  • You and your partner can each purchase insurance with 100% coverage. 
  • You will be able to purchase a single policy on two heads with 100% coverage. Can't see the difference between the two? Don't worry, your independent credit broker will explain all of this very clearly to you.

Additional guarantees in the event of outstanding balance insurance

Some insurers will allow you, in addition to your death cover, to add some additional guarantees to your outstanding balance insurance, such as intervention in the event of disability or long-term incapacity for work; So that you can repay your loan without problem, the insurer will pay you an indemnity (lump sum). You will not necessarily find all these guarantees with all insurers. Our specialist will of course be able to inform you about this. Ask your question , without obligation.

How much is the premium for outstanding balance insurance for your mortgage?

The amount of the premium for your outstanding balance insurance will depend on your age and state of health. The insurer will ask you, for example, if you smoke and / or if you have a serious illness. We will explain the differences in the calculation of the premium to you in a future article. So remember to regularly consult the hypotheque.be site!

Do you still have questions about outstanding balance insurance for your mortgage loan?

Your independent credit broker will be happy to help you! You can always get in touch without any commitment with an independent loan broker like Credishop near you. He will explain everything you need to know to take out a home loan or an installment loan with peace of mind.

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