Term life insurance - what really matters: tips from financial experts

Term life insurance - what really matters: tips from financial experts

According to a report by www.t-online.de,

Term life insurance is important protection for surviving dependents in the event of your own death. It is used to pay out the previously agreed sum to the beneficiaries in the event of death. Experts especially recommend that people with financial dependencies take out such a policy, for example to pay off loans and ensure that they remain in their own property.

The insurance costs depend on various factors, including the agreed death benefit, the term, the age of entry, the state of health of the insured person at the time of application and their profession. Risky hobbies and nicotine consumption can also influence costs.

There are various contract options for term life insurance, such as linked term life insurance, cross-insurance and separate contracts for couples. Each option has its advantages and disadvantages, and care should be taken to inform the insurance company immediately in the event of death in order to avoid benefit reductions.

Capital-forming life insurance, in which capital is accumulated and interest is paid, used to be popular, but experts are increasingly recommending that insurance and savings products be separated and that capital be built up with an ETF savings plan, for example.

It is important to provide honest information when submitting your application, as incorrect information can result in benefits being denied or reduced. In addition, the term should be chosen so that the partner is dependent on the potential loss of income, and a review of the policies with a view to possible improvements in benefits is recommended.