How to save money when buying term life insurance in 2022

How to save money when buying term life insurance in 2022

According to a report by t-online.de, term life insurance is a useful addition to your pension plan to protect your surviving dependents in the event of your own death. Particularly if only one person earns the household income, taking out such insurance can help minimize the risk of financial shortages. Taking out term life insurance can help alleviate the financial worries of surviving dependents in the event of death by paying out the agreed sum in advance.

According to the consumer organization Money and Consumption, it may be worth taking out term life insurance this year, as many insurers have a “birthday rule” whereby you become one year older for insurance purposes on January 1st, regardless of your actual birthday. This can mean significant savings potential and savings of up to two annual contributions.

The costs of a policy depend on the agreed death benefit, the term of the insurance, the age of entry, the state of health of the insured person when the application is made and their profession. According to Finanztip, the costs for policies with an insured sum of 200,000 euros are between 100 and 300 euros per year.

This birthday rule from insurers has a significant impact on the costs of term life insurance. By taking out a policy this year, insured people can potentially save a lot of money, as they are currently classified as younger for insurance purposes and therefore pay lower annual premiums. People considering purchasing term life insurance should therefore consider the possibility of saving and make their decision based on this information.