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Borrowing so you can go on vacation, can you find loans like this on the internet?

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.

Vacation credit

The vacation loan is a revolving credit. This means that you take out a loan with a certain limit, but that you decide when you withdraw an amount. This way you always have enough money when you go on vacation. A revolving loan has no fixed deadline by which the loan must be repaid. It offers the possibility to withdraw paid amounts again. But if you have money left over, you can also pay off extra without penalty. The interest rate of a revolving credit is usually lower than that of a personal loan. Choosing a vacation loan offers more freedom than opting for a personal loan. Because you are free to choose the amount you withdraw and repay each month. Also, the term is not fixed in advance, which means that you do not have to repay the loan in full before a certain date. https://www.youtube.com/watch?v=c91JYK4AMZc

Vacation loan

The vacation loan, also known as a personal loan, offers more security. Because you know exactly where you stand before you take out the loan. The interest rate is fixed and cannot be higher or lower during the time you pay off the loan. The term is also fixed in advance. So you know exactly when you have paid off the loan in full. In this way, the amount you pay off each month can be calculated precisely; the interest rate and the monthly instalments are known in advance for these types of kredit. Choosing a vacation loan offers more security than choosing a vacation loan. Because the term, the interest rate and the amount that you repay each month are known in advance. This allows you to calculate before you take out the loan whether you can spare this amount each month, or whether the loan is perhaps too high. In that case it is better to take out a smaller loan, so that you do not fall behind with your payments.

Pay out funeral insurance earlier, how is this taken care of in Germany?

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 disease

Some 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.

Requirements

The 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 insurance

Payment 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 free

When 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

Surrender policy

When the funeral insurance is surrendered, the insurance is canceled and the insured is no longer entitled to a payment/compensation in the event of death. Depending on the amount of premium paid and the policy conditions, the insured is sometimes entitled to the surrender value of the funeral insurance. Ask your funeral insurer how the surrender value is calculated.