Advantages and disadvantages of mixed life insurance
The mixed life insurance seems to cover every aspect and presents itself as a very advantageous variant of personal provision:
- The insured person determines who receives the insurance benefit in the event of his death. This is interesting, among other things, for couples in the cohabitation, because the legal succession would not apply here. Nevertheless, inheritance law plays a role, because it at least limits the possibility of preferential treatment.
- Families are well insured with the mixed life insurance. The credit that is paid out of the life insurance goes first to the family, then any creditors are serviced. The prerequisite for this is that the children or spouse are named as beneficiaries.
- By taking out life insurance, it is imperative to pay an annual premium. This is known as compulsory savings and ensures a fixed amount for your own pension.
But mixed life insurance also has disadvantages: For example, financial losses can arise if a contract is terminated prematurely. The surrender value is generally lower than the premiums, interest and profit sharing previously paid. Furthermore, the mixed life insurance contract is often not very transparent and fees are payable that were not recognizable from the start.
The surplus share is not guaranteed: it is usually paid out, but there is no legal entitlement to it. If the insurance company has not generated a surplus, the policyholder cannot receive one.
How is the mixed life insurance funded?
As a policyholder, you regularly pay into mixed life insurance. This can be the case with a monthly, quarterly, semi-annual or annual premium. Single premiums are also possible, but stamp duty of 2.5 percent is payable.
The premiums paid are divided into death risk insurance, savings capital and fees. In general, one percent of the sum insured is assumed as the acquisition and administration costs.
However, the insurance company can determine these costs itself, so it is worth taking a close look and comparing this point before concluding an insurance contract.
Important: If you cancel your life insurance, you have to accept severe losses. Because the fees still apply, they are deducted from the premiums paid to date. Only when the final costs have been financed can the savings capital begin to be built. This has a negative impact on the surrender value.
If you would like to take out a mixed life insurance policy, take a close look at the conditions and premiums offered as well as the fees. The insurance professional must be able to break down the charges that apply. Also consider whether mixed insurance is the right choice for you. If that is the case, here is the one best life insurance Switzerland to find!
