Liability for real estate loans and equity financing with life insurance – banks, insurance companies and brokers are responsible for repayment

Life insurance policies for the repayment of construction loans The combination of several financial products (e.g. building loan and life insurance, real estate loan and building society contract) promises the investor additional income through possible interest rate differences or tax savings, and at the same time additional commission for the agent. However, it is not […]

False advice: In the case of real estate financing with life insurance

Insurance and finance brokers liable for residual debt, or interest disadvantage?   Life Insurance and Fixed Loan: A judgment of the Regional Court of Izehoe dated 29.01.2009 (Case No. 7 O 27/09) demonstrates a typical course of events in financing and insurance brokerage. The plaintiff had financed the construction of his house. His insurance and […]

Life insurance for financing and in insolvency

Differences in family provision and succession arrangements at home and abroad   The Federal Court of Justice (BGH) ruled in its judgment of 27 September 2012 (Case IX ZR 15/12) that the granting of an irrevocable subscription right – solely for the payment of a life insurance policy in the event of death – is […]

Federal Ministry of Finance: Insurance intermediaries secure zero return on life insurance policies

– Why the days of effortless money-making via life insurance are long gone –   Agents’ commissions fall The Life Insurance Reform Act (LVRG) not only lowers the guaranteed interest rate for life insurance policies from 1.75% to only 1.25% from 2015, but also the permitted inclusion of acquisition costs through zillmerisation from 4% to […]

Reversal of closed participations and life insurances through rescission, revocation and termination?

– How capital investors can be deceived systematically also by “money back! order” –   Current BGH ruling on the invalidity of “money-back orders The Federal Court of Justice (BGH. Judgment of 11.12.2013, Ref. IV ZR 46/13) ruled that the purchase of “used” life insurance policies is null and void unless it is a genuine […]

Retirement planning with annuity purchase instead of life insurance or sovereign wealth funds with cash cover

– How the state can ensure the efficiency of retirement planning for the middle class –   After 31 years of work, average earners will only receive a basic pension (social welfare level, with up to less than 758 euros per month) – low earners would have to work 63 years in social security for […]

Real estate and construction financing: We advise you on the ground!

– Credit institutions are liable for failure in real estate financing duration until retirement age –   Credit institutions often finance real estate in the foreseeable knowledge that the property will not be paid off by the time the borrower retires. If a failure of the financing and thus a forced sale of the property […]

BGB-Leibrenten as the better alternative to private pension insurance

In some city archives historians find records of an annuity purchase – like these. What is behind it and what does it mean for us?   Since then In the 13th century, the purchase of annuities was the predominant credit business of the Middle Ages. The future pensioner bought the right to receive a life […]

No speculation with death by transfer of the life insurance

The Federal Supreme Court (BGH, ruling of 27 June 2018, file no. IV ZR 222/16) decided that to insure the life of another (the insured person, CP), the consent of this CP is also required at a later date. This applies not only to the original conclusion of the contract, but also if only the […]

Sale of life insurance policy destroys shapeable additional income

In its ruling of 16 October 2018, the Federal Court of Justice (BGH, ref. VI ZR 459/17) decided how contracts for the sale and assignment of used life insurance policies lead to an obligation to pay damages if the investor or policyholder (UN) of the life insurance policy bears the payout risk according to the […]