November 13, 2023 • 09:46 by the editors
The average Dutch person does not take into account that he will die prematurely, but this can still happen. If you do not have term life insurance (ORV), your surviving relatives may get into (financial) problems. Reason enough to take out this insurance if you ask us. Before you do this, you will of course first want to know what an ORV is. That is why we explain here how this insurance works. We will also discuss the benefits and tell you how to take out term life insurance.
This is how an ORV works
Almost everyone has heard of term life insurance, but there are still plenty of people who do not know exactly what it is and how this insurance works. That is why we first give you some more information about an ORV here. To start with, you should know that you can take out this insurance on both your own life and that of someone else, such as your partner.
If the person whose life is insured dies within the term of a term life insurance policy, surviving relatives will receive a one-off payment from the insurer. The amount paid out depends on the amount insured that you selected when taking out the insurance. In addition, the choice of a constant amount, an annuity decreasing amount or linear decreasing amount affects the payout of a term life insurance policy.
The biggest benefits
Now that you know how term life insurance works, you may already be convinced of the usefulness of this insurance. Is this not yet the case? Then you certainly also want to know what the benefits of term life insurance are. We have listed the largest below.
1) You decide what you use the benefit for
Many people think that there are rules attached to the benefit of an ORV, but that is not the case. You decide for yourself what you spend the money on. Yet we see that many people receive benefits from one term life insurance for a rental property or use a house. This means that surviving relatives often do not have to move, which is nice.
2) You largely put together an ORV yourself
A second advantage of an ORV is that you largely put together this insurance yourself. When you close you have to make a number of choices. In addition to the person you want to insure and the insured amount, you also determine how long the benefit will last, whether the premium will remain the same or decrease and whether the premium is fixed or variable.
3) Distribution is not taxable
Do you die within the term of an ORV? Surviving relatives will then receive a large amount in one go. You don’t have to worry about some of this going to the tax authorities goes, because that is not the case. No income tax has to be paid on the payment of a term life insurance policy.
Take out term life insurance
Do you currently not have a term life insurance policy, but do you now realize that it is wise to take out one? Then don’t wait any longer, take action immediately. Nowadays you can get one online from most insurers take out life insurance. After you have entered the requested information, you will immediately see how much you pay per month for an ORV. Do you agree with the premium? Then continue the application process and submit an application. If an insurer approves your application, your term life insurance is immediately active.
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2023-11-13 08:54:03
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