For a payment on the house, the existing life insurance policy is to serve as the basis for additional liquidity. The offer is called a policy loan (Policendarlehen). Before you include the cash inflow in the financing, the continuing insurance contract and the repayment of the additional obligation must be considered together.
Check the concrete arrangement
BaFin refers to policy loans in connection with life insurers and explains the term using the security provided by the insurance up to the surrender value. [BEGRIFF] That does not imply any assurance that your contract can be pledged or that a specific amount is available.
Clarify provider, legal structure, existing third-party entitlements, disbursement, ongoing costs and consequences for the insurance benefits on the basis of the complete documents. A loan from a third-party bank and a payment by the insurer are not treated as the same construct without examination. The article makes no statement about individual tax consequences.
Calculate the invented model in full
For the illustrative calculation we assume an unchanged continuing insurance contract and a separate loan of 20.000 Euro. In the model the loan costs 1.000 Euro per year in interest to be paid in full. The previous insurance premiums of 1.200 Euro per year continue to be paid. After two years the full loan amount is due; there are no further costs.
Over the two years this results in 2.000 Euro in interest and 2.400 Euro in insurance premiums, together 4.400 Euro. In addition, 20.000 Euro in loan principal must still be repaid at the end. The continued payment of insurance premiums in this model is not at the same time repayment of this loan.
Do not use a later benefit twice
If the insurance is to cover the repayment, you need the actually confirmed benefit available at that time and the concrete offset. An assumed maturity benefit of 30.000 Euro and a repayment of 20.000 Euro would, before other items not considered here, leave only 10.000 Euro remaining funds.
The full 30.000 Euro must then not appear again as untouched retirement reserve or next property capital. Non-guaranteed benefit portions are also not treated like confirmed minimum payments.
Assess the alternative for the same purpose
For a real offer compare costs, further insurance cover, amounts available later and other financing routes that are actually possible. An early termination of the contract would have to be examined with its own consequences; it is not recommended here.
A usable decision therefore contains the current inflow, the additional ongoing burden and the clarified end point. The familiar insurance name alone does not make the newly arisen obligation your own free asset.