Life insurance why?
Life insurance combines the advantages of a private pension plan with financial security for dependents – right from the start of the contract. Furthermore, customers can additionally protect themselves against risks such as accident or occupational disability.
In addition, Why should life insurance be taken out?
Life insurance covers the death of the insured. … Although endowment or unit-linked life insurance policies can also be taken out, term life insurance is the first choice when it comes to covering surviving dependents.
Likewise one can ask, when does the life insurance take effect? Basically, term life insurance pays out the insured amount upon the death of the insured person, regardless of the cause of death. … If the insured person intentionally kills himself or herself within the first three years of the policy’s inception, most insurance companies will not pay.
Also know What does life insurance cover?
The term life insurance covers all insurance policies that insure against biometric risks such as death or disability, as well as insurance policies that serve to provide for private retirement. … Life insurance policies are personal insurance policies, since the insured risk lies in the person.
Who gets the life insurance after death?
Upon the death of the decedent, the beneficiary receives the money from the life insurance policy. … The beneficiary is another person upon his or her death: the life insurance policy pays out the sum insured to this person upon the death of the decedent, regardless of whether he or she is also the heir.
This is what the subsequent insurance guarantee means
A subsequent insurance guarantee refers either to the right to optionally adjust benefits or to increase the sum insured. However, it does not allow for a reduction in premiums. An occasion-related claim on the guarantee is possible in various situations, for example, life events such as:
Birth or adoption of a child
Career start after training
Start of self-employment
Purchase or construction of a property
Some insurance companies also offer their customers a guarantee of subsequent insurance cover, irrespective of the reason. In this case, customers have the option of increasing their insurance coverage at specified times and within specified periods. However, this option often only exists in the first few years of insurance. Some insurance providers exclude subsequent insurance if, among other things, the following conditions apply
when a certain age limit is exceeded
when changing to a tariff without a subsequent insurance option
if the period specified by the insurer has elapsed
Life insurance policies very often include a guarantee of subsequent insurance. The increase of benefits is then mostly possible without a new health check. In this case, the insurer is not asked again whether the insured person has taken up a high-risk hobby or whether his or her state of health has changed. With a subsequent insurance guarantee, insured persons increase the insurance cover if necessary, they change the maturity benefit at the end of the contract term or arrange both at the same time. These are options that young people in good health in particular should keep open. They then adjust the benefits of their life insurance policy to their salary development by means of subsequent insurance. Policyholders should always bear in mind that increasing the insurance amount requires a contract amendment. This must be recorded either with a new insurance policy or a supplement. Unlike a subsequent insurance guarantee, premiums are automatically adjusted to compensate for inflation in the case of so-called dynamization. Subsequent insurance guarantee for occupational disability insurance In occupational disability insurance, the amount of the sum insured can also be subsequently adjusted with a subsequent insurance, usually without a new health check.