The outstanding balance insurance is an insurance that covers the mortgage. It allows the reimbursement of the remaining payments, according to the percentage of capital insured, in the event of death and/or invalidity of the insured. If you are two borrowers, at least 100% of the capital should be split between the 2 co-borrowers. You may even choose to insure 100% for each borrower.
Thus, in the event of the death of one of the two co-borrowers, the insurer reimburses the full credit to the bank and the remaining co-borrower therefore has nothing to pay and retains the property.
It should be known that the outstanding balance insurance is not mandatory, although highly recommended. It can be paid in once or included in your monthly repayments.
The price of the insurance depends on your age, your health condition and the type of property you wish to acquire. Finally, be aware that the insurance premiums paid are tax deductible under certain conditions.