When do I need life insurance?

• • To secure a loan

    Risk life insurance can be used to hedge a loan or mortgage. The insurance amounts to the loan amount and is adjusted accordingly as the loan amount falls. This ensures that the amount that is currently still open at the bank is secured. In the event of death, the survivors are covered because the loan is repaid. At least financial worries are over for now.

• • As death insurance for surviving dependents

    If you have a family to look after and are possibly still the main earner, you should ensure that the family is covered in the event of your own death. This is possible with a life insurance policy that covers the death. A fixed sum is agreed, which is paid to the surviving dependents in the event of death. This allows burial costs to be met as well as living expenses, although the latter will certainly not be possible for life. However, depending on the amount paid out of life insurance, financial security is provided for at least some time.

• • To secure your own pension

    The pension benefits that can be expected from occupational and statutory AHV are extremely low and the trend is even falling. This means that there is not enough retirement provision. If you want to close the supply gap between statutory or professional benefits and actual needs, you have to resort to private provision. This can be achieved through life insurance. A premium is paid over the agreed term in the case of capital-forming life insurance or mixed life insurance. The amount saved is paid out together with interest and profit sharing as a one-off payment or as a pension.

• • To take advantage of tax benefits

    Life insurance can also be useful if tax benefits are to be used. The premiums that must be paid in annually must be deducted in full from taxable income.

Conclusion: In these cases you need life insurance

Life insurance is less necessary for one person himself, unless it is about private retirement provision. Rather, life insurance is a good choice as a way to protect survivors from financial burdens. In the event of death or in the event of the policyholder becoming unable to work, the agreed amount is paid out as a pension or a one-off payment, thus ensuring the financial existence of the surviving dependents or relatives of an invalid. 

As a purely wealth-building measure, life insurance is not necessarily the first choice, because here it is possible, among other things, to open a 3a account with the bank that does not require annual payments.

If you are considering taking out life insurance, it is definitely advisable to compare the providers in question. Pay attention to a reasonable term and not too high premiums as well as exclusions and termination options. You can Find the best life insurance nowby making a comparison with us!