Table of Contents
- 1 Complex market
- 2 Under the microscope
- 3 Know what you need
- 4 We asked finance and insurance expert Oliver Walla about securing loans
- 5 What specific strategies can individuals utilize to effectively balance the desire for pursuing their passions with the need for comprehensive income protection in case of unforeseen events as highlighted by the baker’s example in the article?
Martin K. (41) had a motorcycle accident last year. “It was close,” as he says. This event made him change his mind. “If I had died, my wife and children would have ended up in financial ruin,” the marketing expert says today. Now Martin K. has one Life insurance. In the event of his death, his surviving dependents will receive a one-off sum of 100,000 euros from the insurance company.
Complex market
People like Martin K. want to protect themselves just in case the worst comes to the worst. Deaths, loans (see interview), accidents or illnesses, among other things, can be insured. The insurance products on the market are diverse and sometimes very complex. When it comes to life insurance alone, a distinction is made between classic life insurance with an inheritance and death component, unit-linked and fund-oriented life insurance or lifelong additional pensions.
You can quickly lose perspective here. “Basically there are two variants: life insurance for protection and life insurance for saving money,” explains the Viennese Financial service provider Kurt Beltermann from Beltermann KG. If you want to protect yourself, this also counts Accident insurance or Occupational disability insurance as well as other types of protection such as the protection of basic skills. Even more options in the insurance jungle.
Not everyone needs every type of insurance. But you should concern yourself with the issue of insurance.
Under the microscope
“One customer, for example, was a baker and one day he developed an allergy to flour dust and could no longer do the job he had trained for. He was glad he had one Occupational disability insurance had completed. He now receives a monthly disability pension,” says Beltermann.
Of course, no one knows whether a similar fate will befall the baker or whether an accident will turn your life completely upside down. So what should you consider when choosing insurance? “Not everyone needs every type of insurance. But you should concern yourself with the issue of insurance. Take a close look at your living conditions, risks and financial resources, but also goals. A commercial financial service provider helps to create clarity,” says Beltermann.
Also Viennese Financial services provider Eric Rubas from INFO Consulting and Mediation GmbH is of the opinion that most Austrians don’t pay enough attention to the topic of insurance:
“We rarely think about various accidents or strokes of fate that can completely change our lives. Most people rely too much on the government safety net or think nothing will happen to them anyway. The statistics show that on average we suffer an accident about every ten years.” Young people in particular, who take greater risks, and men are more at risk.
Know what you need
The experts are primarily concerned with raising awareness and addressing the issue of insurance. An independent, commercial financial advisor will help you find out what you really need and which insurance product actually makes sense in your particular life situation.
In addition, the customer’s numerous questions are answered calmly and competently, and details about the individual products are clarified. Eric Rubas: “In the end, the customer receives a product that is tailor-made and with which they will be satisfied for years. And he can feel safe.”
We asked finance and insurance expert Oliver Walla about securing loans
COURIER: When does the bank require loan protection?
Oliver Walla: Actually, whenever you apply for a loan. Things used to be more relaxed, but nowadays everything should be secured. But around 15 percent of customers want coverage on their own.
What types of credit protection are there?
Securing savings deposits, protection through real estate, life insurance or even the car’s registration certificate can be deposited.
What does the insurance benefit the customer? The more collateral you bring with you, the more likely you are to get a loan in addition to all the other criteria. But it also means you are more tied down and have more obligations.
What should the customer consider when concluding a contract?
The credit and insurance system has become so extensive over the years. This requires really good and comprehensive advice. Unfortunately, after years of contracts being concluded too quickly, many customers discover mistakes and this can be expensive.
How can these mistakes be avoided?
It’s still in people’s minds: If I want a loan, I’ll go to the bank. Most people don’t know that commercial financial advisors also arrange loans. These are independent and do not work in the interests of a single financial institution. They don’t work with standardized forms, but rather take the time to explain everything to the customer in detail so that they can make an informed decision that they will still be happy with in ten years.
This series is published editorially independently with financial support from the financial services specialist group in the Vienna Chamber of Commerce.
(kurier.at)
|
23.11.2024, 5:00
What specific strategies can individuals utilize to effectively balance the desire for pursuing their passions with the need for comprehensive income protection in case of unforeseen events as highlighted by the baker’s example in the article?
This article dives into the complexity of the insurance market, highlighting the necessity of understanding various insurance products and tailoring them to individual needs.
Here are some open-ended questions based on the thematic sections:
**Understanding the Need for Insurance:**
* **The article states that many Austrians don’t pay enough attention to the topic of insurance. Why do you think this is the case, and what are the potential consequences of this mindset?**
* **Beltermann emphasizes understanding living conditions, risks, and financial resources when choosing insurance. What specific examples of these factors might influence someone’s insurance decisions?**
* **The article mentions a baker who had to stop working due to an allergy. How can we balance the need for income protection with the desire to pursue our passions?**
**Types of Insurance and their Applicability:**
* **The article briefly mentions different types of insurance: life insurance (protection vs saving), accident insurance, and occupational disability insurance. Can you elaborate on the differences between these types and when they might be most relevant?**
* **The article focuses primarily on protecting against unforeseen events like accidents or illness. What other types of insurance might be important for individuals to consider, and why?**
* **Many people rely on government safety nets instead of insurance. What are the advantages and disadvantages of each approach?**
**The Role of Financial Advisors:**
* **Both Beltermann and Rubas advocate for seeking advice from commercial financial advisors. What are the benefits of working with an independent advisor, especially regarding complex financial decisions like insurance?**
* How can individuals ensure they are choosing a reputable and trustworthy financial advisor? What questions should they ask?
* The article mentions that mistakes in insurance contracts can be costly. What are some common pitfalls to avoid when entering into these agreements?
**Securing Loans (Interview with Oliver Walla):**
* **Walla highlights that securing loans has become more stringent in recent years. What are some factors contributing to this trend, and what implications does it have for individuals seeking financing?**
* **The article mentions different types of collateral for loans. What are the pros and cons of each option, and how do they impact the overall loan experience?**
* **Walla advocates for seeking advice from independent financial advisors when arranging loans. What are the key differences between working with a bank directly versus consulting with an independent advisor?**
These open-ended questions aim to encourage thoughtful discussion and analysis of the information presented in the article. They delve into the complexities of the insurance market, the importance of personalized financial planning, and the role of financial advisors in navigating these decisions.
