Mortgage life insurance
Not by law, but in practice almost always. What matters more is that the premium and your bank's rate discount have to be judged together.
Short answer
No, the law does not oblige you to take out mortgage life insurance. But nearly every Belgian bank makes it a condition of the loan. You are free to take the policy with an insurer other than your lender.
The bank may make the insurance a condition of granting the credit, and generally does. What it may not do is force you to buy the policy from them. You can always compare elsewhere and bring an external policy; the bank may then withdraw its rate discount.
With 100% cover per borrower, that person's death repays the full balance. With two borrowers each covered at 100% — 200% together — the loan is fully repaid on the death of either, and the survivor keeps their own cover. It costs more but gives the partner the most certainty.
Because the insurance is profitable for them. The discount on your rate is usually smaller than the extra premium you pay, but you only see that when you work both through together. Always ask for the rate and the premium, and compare the APR with and without the tied policy.
Often, and the gap is rarely small. Over the term of a mortgage an external policy can differ by thousands of euros from the bank's. Do factor in the lost rate discount, otherwise you are not comparing like with like.
Insurers use a medical questionnaire and may charge a surcharge or decline cover. For people with an increased health risk or a medical history, Belgium has a legal framework intended to help safeguard access to cover, including a right not to have to declare certain cured conditions. Take advice on this before signing a policy.
Want to see what each bank's tied insurance actually costs you, folded into the APR?
Compare your offersThis page is general information, not insurance advice. Conditions, premiums and medical acceptance differ by insurer. Take advice from a licensed intermediary.
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