Borrowing money is becoming more popular and more accepted. For example, we borrow to buy another car, or to remodel our house. Yet borrowing money for a vacation is not yet talked about much. Could it still be some kind of taboo? Borrowing money for a vacation can be a smart move. If you have not yet received your vacation allowance, but you see a nice last minute deal coming along, then it is advantageous to borrow money to book this vacation. When you have received your vacation money, you can use it to pay off the loan. Also, by temporarily borrowing money you can book in time and take advantage of the early bird discount. You are then assured of a nice spot during the high season, at your favorite campsite at this german website.
Normally, a funeral insurer only pays out after the insured person has died. However, in certain situations, the cover of the funeral insurance can be invoked earlier. The insurer will then pay out (part of) the insured amount earlier. The situations in which this may be the case are discussed below.
Terminal diseaseSome funeral insurers have included in the policy conditions that the policyholder is entitled to an advance of the insured amount if the policyholder suffers from a terminal illness. The advance payment can then be used, for example, to purchase extra (palliative) care or to fulfill specific wishes of the policyholder, such as a last holiday with the family.
RequirementsThe insurers that pay out earlier in the event of a terminal illness sometimes apply the rule that the policyholder does not live longer than 3 months and that the term of the insurance is at least x number of years, for example 2 or 3 years. Check with your own insurer whether such restrictive conditions apply in your situation. The fact that payment is made earlier usually has no influence on the amount of the premium that may still have to be paid, in Germany we call that the Sterbegeldversicherung für ältere Menschen.
Buy off insurancePayment is also made earlier when the funeral insurance is surrendered. However, this does not concern part of the insured amount, but part of the premium already paid.
Make premium freeWhen the policy is made non-contributory, the premium payment stops, but the insurance continues until death. The funeral insurer will then pay out a certain amount. How high that amount is depends on:
- The terms of the policy
- The premium paid to a company like LV1871
- The value of the premium in the event of death, because interest may have increased the value of the premium over time