Risk life insurance
Nobody likes to deal with death. Anyone who has to provide for others (children, partners, relatives) should consider the possible financial consequences.
The risk life insurance pays out the agreed sum to the survivors in the event of death, regardless of the term and amount of the paid contributions.
-The basics Great economic difficulties are threatened if the breading of a young family fails. The statutory pension rights, even in survivor care, are low if the deceased has not yet covered long insurance periods or has previously paid in only slightly. Widowing and orphanages are rarely enough to care for the family after the death of a parent. Especially if you take out a high loan - for example for construction financing - you should take out risk life insurance. In an emergency, your relatives can then redeem this loan with the insurance benefit of risk life insurance.
-For whom suitable? If the main earner of a family dies, this is not only a personal disaster for the bereaved, but often also a financial disaster - for example, because loans are due, which were taken in when the family was founded. At least financially ruin can protect risk life insurance. Indispensable for young house builders Risk life insurance is particularly important for young families with one or more children who have built or purchased a house and therefore have hardly any financial reserves. If both spouses income achieve, an associated risk life insurance can also be useful - it pays the full insured sum to the survivor upon death of a partner. Compared to two separate policies, you save about ten percent in this way. Loan hedging through residual debt insurance A special form of risk life insurance is the residual liability insurance. It can be used to secure exactly the sum that the borrower is still guilty if he dies. This ensures that the residual debt can be paid by the survivors in the worst of all cases.
-Scope of services Unlike a capital life insurance, risk life insurance only pays if the policyholder dies during the term. For this reason, risk life insurance is also several times more favourable than policies with a collection of capital. Even with the first grant payment, you can be sure that your family is well secured in the worst case. Price comparison is especially important The benefits are almost identical for the different providers - if the insured dies, the relatives receive the amount that has been agreed upon conclusion of the contract. If the contract ends at the lifetime of the insured person, no benefits will become due. Due to the largely same benefits, experts therefore advise to pay particular attention to a low price for risk life insurance. As a non-smoker, you will already receive a risk protection of more than 150,000 euros for an annual fee of less than 120 euros, which will be paid to your relatives in the event of death.
-Health exam By signing the insurance application, you usually grant the insurer the right to check the data you provide for the state of health at the GP or other medical doctors treating. If you bring with you numerous or serious pre-existing conditions, the insurer may require a risk advance to the contribution or even rejects the application altogether. The reason is that the particular risk of death of people with severe pre-existing illnesses should not be shifted to the community of all those insured at the company. Health information is checked and evaluated Applicants, insurers and, if applicable, the life insurance intermediary will receive a copy of the insurance application. The information on the state of health is evaluated by a medical company from the insurance company. If there are no abnormalities, the insurance certificate will be issued and sent to the applicant. With the delivery of the policy, life insurance cover is then legally achieved.
-Single or partner contract? Some insurance companies offer not only capital, but also risk life insurance for connected lives. A life insurance on related lives insured two or more people in a single contract. If one of the insured persons dies, the death benefit is paid to the survivors. This can be particularly useful for spouses - but also for business partners who run a joint company, so that joint financial commitments can be redeemed after the death of the partner without the remaining financial difficulties.
-Conversion possible The conversion into capital life insurance Most life insurers grant their customers the right to convert risk life insurance into capital life insurance within the first ten years after closing. A renewed health check is usually not necessary during the changeover. If you also want to provide financially for their age, you can exercise this right of exchange. After the end of the contract, there will also be money - the contractual payment including guarantee interest and additional surplus participation. With capital life insurance, you can therefore achieve two precautionary goals - risk protection for your family and a good return for your savings.