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THURSDAY, APRIL 15, 2021 | Roman

Term life insurance comparison - compare rates now and apply online

Term life insurance comparison - compare rates now and apply online

Term life insurance is the most favorable form of death cover - it is reduced to the essentials: Unlike endowment or unit-linked life insurance, it does not provide for a maturity benefit, and insurance premiums are correspondingly lower. This makes term life insurance an excellent choice for survivor protection, which should generally be kept separate from investments. The conditions sometimes differ considerably - both in terms of the premium amount and the contract terms. A well-founded term life insurance comparison will give you good information on this. We have compiled all the important facts on how you can best use it and which points you should consider when making your decision.

Best Term life insurance - what is it exactly?

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Term life insurance comparison: The ideal protection for a happy familyAs protection in the event of death, term life insurance is often mistakenly seen as wasted money, since no maturity benefit can be expected. However, people fail to realize that every endowment or unit-linked life insurance policy contains a term life insurance policy: For the statistical risk that the insurance company will have to pay out the agreed death benefit, a corresponding premium is charged and supplemented by the administrative costs incurred. If, in addition, an investment is to be made, either in fixed-income securities or investment funds, in order to be able to pay out a benefit at maturity, the monthly premium must be increased accordingly.

However, this combination does not always prove to be effective: On the one hand, the monthly premium becomes relatively expensive if the capital investment and appropriate death protection are to be realized at the same time. On the other hand, you lose flexibility, because if you suspend premium payment due to a financial bottleneck, you lose the important insurance protection for your surviving dependents. It therefore makes more sense to separate term insurance from investment in general: Premiums for term life insurance thus remain relatively inexpensive and are easier to pay. In the case of savings plans or other financial investments, on the other hand, premium breaks can be agreed without any problems.

Pure death cover thus ensures that the specified sum is paid out in the event of the death of the insured person. Some of the offers also provide for an early death benefit, which is paid out as soon as a serious illness is diagnosed and the resulting life expectancy is limited. This can be used to cover the costs incurred in the event of an emergency or to compensate for the loss of income in the course of the illness. It is important that term life insurance is tailored to the individual life situation - and there are a number of options here. Therefore, use the term life insurance comparison to get comprehensive information about the special features and prices of the individual tariffs.

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There are numerous good reasons to arrange for death benefit protection:

Protection of the main earner

If one partner in a family earns significantly more than the other, for example because he or she is taking a career break to care for and raise children, the death of the main earner would have drastic consequences: The family income would be seriously reduced, while most of the expenses would continue to be met. Term life insurance for the main earner could at least cushion the financial consequences of such a loss.

Providing for the children

It takes several years for children to stand on their own two feet economically. Parents can use term life insurance to ensure that their children are comprehensively provided for financially even in the event of premature death. The sum insured could then ensure not only their education, but also the start of an independent life.

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Security for relatives

Grandparents and other relatives can also use this method to ensure that their dependents are covered in the event that something happens to them and they can no longer organize their own care.

Cover for financial obligations

Term life insurance is not only recommended for real estate loans, but also for companies that have taken out large loans: In the event of an emergency, the surviving dependents would then no longer have to deal with the repayment of the loan, which is repaid with the death benefit.

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