Risk life insurance comparison: How to protect your family financially
Table of Contents:
Financed with the term life insurance in case of emergency
The term life insurance is a special form of life insurance. Unlike a capital-forming variant, the disbursement in the term life insurance only in the event of death. In contrast, classic life insurance policies are generally geared not only to premature death, but also to survival. As a rule, the insured sum earned is paid out at a certain point in time.
The most important questions about term life insurance
What is a term life insurance?
The term life insurance secures the risk of death of the insured person. A payment of the agreed insured sum will only be made if the insured person dies during the contract period. Otherwise, no benefits are usually due. The exact nature of the term life insurance benefits depends on the choice of tariff. Similar to liability insurance, most insurers offer different types of tariffs. Before concluding a term life insurance, check which insurance is best suited for the individual situation. When choosing a specific, suitable tariff, an online comparison of different providers and tariffs can finally help.
How does it differ from a life insurance??
Endowment life insurance is paid out as soon as the insured person reaches a predefined age. The term life insurance, on the other hand, usually only provides for Death of the insured person. If the insured event does not occur during the term of the term life insurance, you will not receive benefits. You will not get back the paid contributions. Only the risk of premature death of the policyholder during the contract period is actually hedged.
When do you need such insurance?
In families with children, it is common for a parent to be the main earner or even sole provider for the financial well-being of loved ones. Moreover, if you live in your own property that is still being paid off, the need for the main income will increase. In the death of the main earner, the survivors without appropriate protection can quickly into one financial distress devices. You may even have to sell your home.
A risk life insurance when buying a home is absolutely recommended for the main earner or sole provider as soon as the mortgage lending is under roof and drawer. If the policyholder dies during the term, the term life insurance in the amount of the agreed sum insured, so that the home paid by the insurance benefits and the family paid their Keep up to date standard of living can. But even if no home is paid, a term life insurance can be useful if it is completed for the mere financial security of the loved ones.
Until what age can you take out term life insurance??
The conclusion of a term life insurance is usually possible at any age between 18 and about 70 years. Keep in mind, however, that entry age has an impact on the level of contributions – the older you get, the more expensive the insurance will be.
When you graduate is often a maximum age or a maximum term for term life insurance. If the maximum age or the insurance period is exceeded, the insured person will not pay out the insured sum in the event of death. The insurance cover ends at the agreed time.
Example: Effect of age and duration on the insurance contribution
|Age at entry||running time||Age at exit||Price (per year)|
|30 years||25 years||55 years||80.17 euros|
|45 years||25 years||70 years||434.67 euros|
|30 years||45 years||75 years||323.17 euros|
|20 years||45 years||65 years||119.62 euros|
Which forms of insurance exist?
In the insurance industry, three different forms of term life insurance are common. Depending on the situation and demands, another variant is available. There are the following forms:
Classic term life insurance: The insurance contributions remain constant over the term. Also, the sum insured does not change.
Falling term life insurance: The sum insured falls over the years because the insurance claim drops. This special type of term life insurance is therefore often used instead of a residual debt insurance, as one can also secure real estate financing with falling life insurance.
Associated term life insurance: Two partners (whether private or business) mutually secure each other with a contract.
In addition to the three most common forms many insurers also offer different combination products which, however, differ from insurance company to insurance company.
Is there a difference to survivor insurance??
Often the term life insurance is referred to as a survivor’s insurance, which describes their purpose aptly. You can secure your dependents in many ways – term life insurance is a good option. However, any financial security for death cover is a survivor’s insurance.
Which insurance sum is suitable?
The term life insurance is usually concluded over a certain amount, which can be determined by the insured. Common values here are between 100,000 and 500,000 euros. A rule of thumb says that the insurance amount is roughly at three to five times the gross annual income the insured person should be. In the case of real estate not yet paid off, the remaining liabilities should also be taken into account in the amount of the sum insured.
How much is insurance?
The monthly or annual contribution depends on many factors. In the past, sex played a big role. Since life expectancy is higher for women, the contribution to term life insurance was usually more favorable than for men. Through the introduced Unisex rates However, gender does not matter anymore in terms of the cost of term life insurance. Rather, the sum insured, the age, the state of health, the occupation and the circumstances of life decide on the costs.
How does the term life insurance comparison work?
With our comparison you can at a glance within a few seconds current products face each other. To find the right rate, specify in advance what the term life insurance should look like. Here is an overview of the contents of the risk life comparison:
The sum insured indicates up to which damage value the provider pays. In the event of death, your survivors receive this sum. It should therefore be at least as high that outstanding debts can be paid or a living can be denied. The sum insured affects the amount of the contributions – the higher it is, the more expensive the insurance becomes.
The term determines until which time you or your loved ones are protected. But beware: the contract ends and it occurs no insurance claim you will not get paid back. In addition, you should make sure that the term is not too high with age. Then it could be that no suitable insurance is displayed. Many insurers set an age limit.
The costs for smokers and non-smokers differ in some cases considerably. In order to get suitable policies displayed, you must set the check mark for smokers to yes or no above the comparison. Insurers usually require smokers higher contributions. Caution: Indicate in the contract to be non-smoker, this must be true. Otherwise, it can happen that the term insurance does not pay if it comes out that you have made false information.
In the case of term life insurance with premium relief, you can use the Suspend contribution payment (temporarily). Here are several options: You can pause the payments for a certain period of time, make the insurance completely non-contributory or reduce the insurance sum. Which options the insurance offers depends on the provider.
If the insurance has a post-insurance guarantee, you can Adjust policy later. This is useful, for example, if you are looking for new talent, acquire a property or change your life circumstances in a different way.
Early death benefit
If your insurance is equipped with this option, you can already get the insurance sum during his lifetime to be paid. However, this is only possible if, for example, you suffer from a terminal, fatal disease.
You can conclude your term life insurance either as a single or a couple contract. With a couple contract you secure yourself each other from. The amount will be paid only once.
health issues without further investigation are usual at graduation. You have to provide information on previous illnesses and medication. Some insurers waive up to certain sums on a medical health examination. This is usually required only when the sum insured is very high or certain diseases are present.
What’s up with the health check??
A very important role plays the health status. Who smokes, brings a thicker medical record or carries out a risky profession, must pay more than non-smokers or healthy persons. Finally, there is the risk that in less healthy people the insured event occurs higher than in healthy individuals. For the insurance, this would be more expensive, which they can be offset by higher contributions. Therefore, if you take out term life insurance, you must answer health questions. However, the answers should necessarily be true, as in the worst case the claim for disbursement of the sum insured expires. Already treated illnesses do not mean that you will be flatly refused. Some insurance companies charge a risk premium in these cases. With higher sums insured or certain illnesses, some insurances also carry out medical examinations.
Important: Even if you advertise in some places with a term life insurance without health issues, you should note: Without health information, you can not get insurance. Even if the provider does not order any further medical examination, he must be informed about your health. This even benefits you most: Without health issues, the insurer can not assess the size of the risk. The policy would be much more expensive then.
Which term life insurance is recommended?
In order to find the appropriate term life insurance, our comparison is very good. As mentioned above, you can set it to your liking so that only suitable products appear. You will also receive the most important cornerstones of the product. You already have insurance and would like to change it? Then you should only cancel the existing term life insurance, if it is ensured that the new insurance contract is concluded. In this way, there is a seamless transition between the two treaties.
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