If we terminate the insurance now, the surrender value of the insurance as of February 28, 2010 would be $ 1,449,000, the amount paid so far is $ 2,664,752.
The modification fee of the bank loan agreement is HUF 10 thousand plus approx. Notary fee of 20 thousand HUF.
If you have received a tax credit after insurance, it should be refunded for the last 3 years. (There will be no repayment after 2013.)
If the scheme is retained , the interest plus the cash to be paid back into the insurance would be a total of HUF 15,895,995 .
If we canceled the contract, we would reclaim the $ 1,449,000 repurchase value and pay the $ 30,000 contract modification fee, plus the land registry cost (about $ 10,000), and renegotiate the 13-year annuity loan by prepaying this $ 1.5 million , then our monthly payment would be $ 24,500 for 13 years, which would mean $ 12,333,961 total plus $ 10,000.
The loan should be converted into an uninsured facility
So, the client has lost a modest 5 and a half million forints on a combined loan compared to a simple borrowing. We could only save over three and a half million of this money when he turned to me.
(In the case of an interest-subsidized loan, the rate of subsidy depends on the actual 5-year government bond yield at the time of the interest rate. Therefore, the client is worse off at a higher interest rate.)
Well, so great products are combined loans
Note: It is important that you have an interest-subsidized loan, do not replace your loan, because then you will lose the interest subsidy, but ask for a revision (contract modification) to keep your subsidy. To calculate this, you will first need to ask your current bank debt, the current repurchase value from your insurance company and use this information to calculate how you are doing better. You must also calculate the total cost of the contract modification.
More complicated than unit-linked insurance is that the amount at maturity is not fixed, so you have to estimate the expected end-of-term payment after deducting the costs from the returns so far. As you can see in the example, it is worth reviewing your combined loans because you can save millions on it. To shock you, even with a home loan combined with home savings, you can fail a lot, read here.
I think you have never done that much in the last 5 years check
I hope this case was also an instructive example of why we should not believe anyone’s word when it comes to our money. Many people, even in their nightmares, do not think how many hundreds of thousands of millions will fail with a bad construction, be it a loan or a capital protected fund or life insurance.