Term life insurance

Who would have to bear the ongoing expenses alone?

This question helps more than a blanket recommendation for every adult. Term life insurance pays out in the event of an insured death within the agreed term. The beneficiary receives the money. Whether you need this protection depends on who would be financially burdened after your death.

How long will the money be needed?

The term should cover the obligation for which you are entering into the contract. For children, this can extend to the expected financial independence; for a loan, this can extend to the planned repayment. A short term just because of a lower premium can later become problematic: A new contract then again depends on age and health.

A falling sum must match the loan.

The remaining balance of a loan does not necessarily decrease in the same way as a linearly decreasing insurance sum. Compare both courses. A constant sum may be more appropriate for ongoing family needs. Loans and family budgets can, if necessary, be secured through separate contracts with different terms.

Check additional insurance and extension options. Some tariffs allow an increase without a new health check under certain conditions. Events, age limits, deadlines, and maximum amounts apply. Contractual dynamics can increase the sum insured; contributions also rise. None of these options should be derived solely from a brief description in the comparison.

How much does term life insurance cost?

The amount and term determine the desired protection. The insurer then assesses the personal risk, including entry age, health information, smoking status, professional activity and certain hobbies. The same person can be classified differently by two providers. A general starting price would therefore be of little help.

In a term life insurance comparison, all provided details must match. A lower sum insured or shorter policy term does not equate to a lower price for equivalent coverage. Ensure the displayed premium already reflects the final risk assessment.

Read up on health questions, don't abbreviate them from memory.

Answer the insurer's questions completely and truthfully, based on their wording and the period in question. If you are unsure about a diagnosis or treatment, obtain the practice's documents. A succinctly completed application is no advantage if important information is later missing.

§ 19 VVG regulates the pre-contractual notification obligation. Depending on the circumstances, errors may result in contract adjustment, termination, withdrawal or problems with performance. It does not follow that every mistake automatically excludes every performance. The consequences must be examined legally and on a case-by-case basis.

Without an examination does not mean without a health check.

For many applications, health questions are sufficient initially. For larger sums or certain information, further documents or investigations may be necessary. Offers with simplified questions have their own requirements. You should therefore carefully question a blanket promise “without a health check”.

Pre-existing conditions can lead to different decisions depending on the insurer and the course. A professionally supported, anonymous preliminary risk inquiry can help to classify the options before an application is made. This is not a promise of acceptance.

When it comes to smoking status, the definition of the respective insurer applies. Which products are covered and how long the required period without consumption can vary. Also read whether a later onset of smoking must be reported. Your own assumptions about classification do not replace these rules.

Cross term life insurance

Here each person holds their own contract on the lives of others. Who owns the contract, who is insured and who pays the premium is deliberately separated. This can be particularly interesting for unmarried couples, but it must fit the actual financing and tax situation.

Payout, end of contract and a later change

For the benefit to be paid, the insured death must be within the agreed coverage. Relatives report him to the insurer and submit the requested evidence, such as death certificate, contract documents and proof of pension rights. Processing depends on the case and the documents; A fixed payout period cannot be guaranteed here.

The coverage is generally not limited to accidental death. However, read the exclusions and special benefit rules. An additional accidental death benefit from the Accident insurance is therefore not the same as term life insurance of the same level.

If the term ends without an insured death, there is generally no maturity benefit for pure term life insurance. Check in good time whether the need actually ends. A new contract may become more expensive due to age or health or may no longer be possible under the same conditions.

When it comes to a home loan, it is also worth making a clear distinction: term life insurance covers the financial burden after a death. The Building insurance concerns damage to the house. Neither of them takes on the task of the other simply because it involves the same property.