Term life insurance is intended to mitigate the financial damage in the event of the death of a working person.
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Dusseldorf Anyone looking after their family should also think about the worst-case scenario: their own death. Some families are threatened with financial disaster if their current income is lost. In the event of the death of the insured, term life insurance provides a predetermined benefit.
“Term life insurance is important for families in order to secure current loans and their entire livelihood,” says Bianca Boss from the Federation of Insureds. The policies are not expensive. If you take out term life insurance, you should choose a flexible tariff.
The sum insured should be adjustable according to individual needs without a new health check. The financial requirements can change when a child is born or when a house is built. The sum insured should be chosen so that the repayment of the property can also be financed.
The rating agency Franke and Bornberg examined the offers of 30 insurance companies for term life insurance. In addition to the amount of the annual premium, the quality is also important in the evaluation. It makes up 70 percent of the rating. “Services such as extension or increase options make the tariffs more flexible and upgrade the basic variants,” says Michael Franke, Managing Director of Franke and Bornberg.
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Gross and net premiums each account for 15 percent of the calculation. The net amount indicates what contribution the insured person actually has to pay per year. Profit sharing is taken into account. The gross premium, on the other hand, shows the potentially possible premium without profit sharing.
Interested parties should take out term life insurance as early as possible. In principle, the providers also require a health check for this insurance. The older a person gets, the more likely diseases are. Then risk surcharges are possible or the insurer rejects the insurance application.
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In the example of a 30-year-old employee, 18 out of 30 tariffs from providers can achieve the top rating of “very good”. Three providers achieved the maximum number of points of 100. The Basler Lebensversicherung offers the cheapest policy with the “Risk Insurance Premium”: The annual insurance premium is 80.16 in the sample case for a cover of 100,000 euros. Interested parties can choose between an insurance sum of 50,000 euros up to one million euros.
Subsequent insurance is possible for the birth of a child, marriage and the purchase of a property, but also without a reason at the beginning of the sixth or seventh year of insurance. The sum insured can be increased by a maximum of 100,000 euros. If desired, insured persons can opt for automatic adjustment to the inflation rate. In view of the current sharp rise in prices, more and more policyholders are opting for this option.
Allianz Lebensversicherung also achieved the highest rating with its “RLV Plus” tariff. Here the insurance can be equipped with a dynamic adjustment of the sum insured. In the sample case, an insured person has to pay EUR 83.74 annually. He or she can combine term life insurance with accident insurance. In principle, the policy can be extended by 15 years without a new health check.
With Dialog Lebensversicherung, whose “RLV Risk-Vario” tariff also achieved the maximum score of 100 points, the annual premium is EUR 92.24. In the event of payment difficulties, an interest-free deferral of contributions is possible for a period of up to 24 months. The insurance protection remains intact. The sum insured can be increased by EUR 100,000 during the term.
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