Should I take out life insurance?

Life insurance: protection in the event of death and investment

Term life insurance

In contrast to endowment life insurance, term life insurance only insures the risk of death. This means that the sum insured is only paid out if the insured person dies. Families with children in particular are often faced with financial chaos when a partner dies.

Term life insurance is always there urgently needed if the death of a parent or partner could tear a financial gap that could not be filled by pensions or own assets. The Running timet can be agreed that the insurance ends when other pension claims take effect and / or the children are financially on their own two feet.

  • The insurance sum to be agreed is determined on the basis of the individual income and financial situation.
  • Beware of representatives: Many insurance agents want their customers to get a capital life insurance instead of a term life insurance, with which money is to be saved at the same time. The reason for this is that the agents receive significantly higher commissions for these contracts. There are, however, more profitable options for securing old-age provision.
  • The insurers differ less in their services than in the amount of the premium. So compare prices!

Endowment life insurance

A capital life insurance always consists of two achievements. For one thing, it offers financial security for surviving dependentsif the insured dies. Then the agreed sum insured is paid out. On the other hand, it is a Savings plan. However, the customer does not find out how the contribution is split up.

Furthermore, only the guaranteed survival benefit and the guaranteed profit sharing (for new contracts from January 1, 2017 only 0.9 percent) are certain. Any surpluses beyond this are not guaranteed and depend on the business success of the insurance company. Here customers can only "rely" on the forecasts of the insurers. However, high yields are not expected in the near future.

  • If you are not sure whether you can keep up the term, you should not take out endowment life insurance. Because:
    Canceling beforehand means loss!
  • Survivor protection can also be topped up with a considerably cheaper term life insurance.
  • Endowment life insurance can be used as part of a
    company pension scheme, for example as
    Direct insurance, make sense. Then wave to the insured
    Tax benefits.
  • Anyone who decides on capital-forming life insurance despite the disadvantages shown should pay the contributions annually. That saves surcharges. You can dispense with any additional accident-related death insurance that is included. It is unnecessary and too expensive.
  • High-performance insurers should always be chosen to take out insurance. Insurance advice from the consumer advice center gives an overview of the market.

Unit-linked life insurance

Unit-linked life insurance is a combination of term life insurance and a fund savings plan. The paid-in money is invested in investment funds, for example equity, pension or real estate funds. There is no minimum payout, as is the case with endowment life insurance. What is paid out is what the fund has generated.