Jakarta, CNBC Indonesia – You may have wondered, what will happen to the house installments if your partner who is paying off the mortgage (KPR) suddenly dies? Will this burden be your burden as the heir, or will the house be paid off by itself?
Both of these possibilities can occur, and if you feel burdened or want to reject the inheritance, you have the right to refuse to accept mortgage coverage that has not been paid off.
However, how can a house that is still in the process of paying installments be paid off automatically when the owner dies? This is an interesting thing to learn.
Credit life insurance
Credit life insurance is the key to the answer. When someone dies, financial risks arise for the heirs, especially related to the debts that must be borne. Life insurance functions as a tool to transfer financial risk. However, to get the benefits of this insurance, KPR owners must pay premiums regularly at the same time as home installment payments.
By having life insurance, the remaining unpaid mortgage debt will be covered by the insurance company. This means the heirs can own the house without having to think about outstanding debts.
However, what if you want to buy life insurance when applying for a mortgage using your partner's joint income? If there is a “first to die” option, you should choose it. This option guarantees that the insurance company will pay off the mortgage debt if one of the borrowers or the spouse dies.
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