Why term life insurance is essential

Term life insurance for families is actually a must. Retirement provision via life insurance, on the other hand, is a thing of the past. Stiftung Warentest researched how high the premium can be in 85 tariffs.

were valid for a long time Life insurance as excellent Risk protection and at the same time as good retirement provision. Now it’s quiet around her. The low interest rate phase has had a huge impact on endowment life insurance. The variant Term life insurance but is therefore not superfluous. On the contrary: for them Rhineland-Palatinate consumer advice center This insurance is important “to protect surviving dependents or a loan in the event of death.” The Stiftung Warentest has 85 tariffs of term life insurance is closely examined. The result is surprising: Expensive offers cost more than three times as much as cheap ones. Who the Comparing premiums can save hundreds of euros a year. The foundation did not find any relevant differences in performance. Each tariff offers sufficient protection – even without expensive extras. If you want to evaluate the complete report on term life insurance, you should download (Price: 4.90 euros). You can find out about term life insurance from CosmosDirekt here.*

Why is term life insurance recommended?

Term life insurance should your family save from great financial hardship. She is relatively cheap to have. “It can make sense for young families with small children if one partner uses his or her income to primarily cover living expenses, while the other takes care of the offspring and the household,” explains Anna Follmann, insurance advisor at the Rhineland-Palatinate Consumer Center.

Protect your property with term life insurance

“Also has to have one Property financed “If the main earner dies, a family can often no longer cope with the financial burden,” adds Anna Follmann. So you can take out term life insurance Restschuld­ver­si­che­rung to use.

When granting a loan for a property, credit institutions often require ownership of one Term life insurance or a separate residual debt insuranceif the borrower dies unexpectedly. The Term life insurance fulfills the same function and is more suitable than pure residual debt insurance, because it is expensive and does littleor so she thinks Consumer advice center.

To protect your property, you can take out term life insurance with a falling insurance sum complete. This means that only the part of the loan that actually still has to be repaid is insured. As the insured sum falls, the risk for the insurance company decreases. This means you can come along clearly cheaper premiums for term life insurance in this dual function. Securing a loan and protecting survivors should always be included two separate policies take place.

How is the insured sum determined?

The heart of term life insurance is this Sum insured. You as an insured person or insured person set the amount which must be paid in the event of your death. As Guideline recommends the Stiftung Warentest the Three to five times the gross annual salary. Another method for determining the sum insured is to determine the Supply gap. It calculates in detail how much money is missing due to the death of the insured person and how expenses and income change.

Pre-existing conditions and Overweight are also important indicators for insurance companies. At high insurance sums Is there a medical risk assessment at a doctor. Health risks upon conclusion of the contract concealmentis not recommended. The insurance can deliberate misrepresentations The clear statement is that she doesn’t have to pay jurisprudence (Federal Court of Justice, judgment of March 12, 2014, Ref.: IV ZR 306/13).

How much does cheap term life insurance cost?

Around the Insurance premiums to be able to compare Stiftung Warentest Model customers created. Example 1: Head of department Maria (Controlling), date of birth July 1, 1987, non-smoker for ten years, normal body mass index, no health problems, no dangerous hobbies, contract starts at 35 years, contract term up to 67 years, Insured sum 450,000 euros.

• Department head Maria in the cheapest insurance
• Ergo: term life insurance
• Sum insured: 450,000 euros
• Annual contribution (paid contribution): 433 euros

Example 2: Roofer Julian, date of birth July 1, 1987, non-smoker for ten years, normal body mass index, no health problems, no dangerous hobbies, contract starts at 35 years, term up to 60 years, Insured sum 300,000 euros.

• Roofer Julian in the cheapest insurance
• Hanoverian: T1 N10 base
• Sum insured: 300,000 euros
• Annual contribution (paid contribution): 233 euros

Beware of tax traps

The Verivox comparison portal from Munich recommends one simple trickwhich makes it possible Inheritance tax in term life insurance to circumvent. In a so-called Cross-cross insurance each party takes out independent insurance on the life of the other partner.

Here’s an example: Partner A insures the life of Partner B and vice versa. The beneficiary is therefore also the policyholder. This eliminates inheritance tax. It is important that the insurance premiums vary from transfer to your own account are.

Die Premium for term life insurance can you from the Tax put down. The legal basis for this is Section 10 of the Income Tax Act (EstG). Paragraph 1 number 3a states that the contributions for risk insurance Special editions are. One condition for this is that a benefit is only made in the event of death – which applies to term life insurance.

Basic tariffs are completely sufficient