In contrast to endowment life insurance, which is used to build up assets, term life insurance has only one task: It is intended to provide financial security for relatives as well as possible in the event of death. Therefore, the following principle should always apply to this form of life insurance: The sum insured must be high, but unfortunately that is not always the case. The Stiftung Warentest took a closer look at term life insurance and found that most policyholders are not sufficiently insured.
An important rule of thumb
What use is term life insurance if the Does family ultimately become a social case and lose your own house? This scenario occurs more frequently than some might think and it always arises when the insured are saving at the wrong end. Stiftung Warentest therefore recommends that everyone who wants to take out term life insurance should multiply their gross income by three times, or even better by five times, per year. If you also have a real estate loan, you should expect this on top. For example, if the main breadwinner in the family earns 50,000 euros per year, then the sum insured for term life insurance should be 250,000 euros. If there is also a loan of 25,000 euros, then it should be 275,000 euros.
Pay attention to the prices
If you want to take out term life insurance, you can save a lot of money in advance compares the prices of the insurers. Prices vary widely and an expensive contract can quickly cost three times as much as a particularly cheap contract. The insured does not have to worry about the quality, because, as Stiftung Warentest has determined, there are no significant advantages with an expensive contract compared to a cheap contract. After the price comparison, the performance comparison should come in second place, because there are serious differences here as well.
How expensive the insurance is also depends on the risk factors of the insured. Smokers have a particularly difficult time here, even those who pursue a dangerous hobby such as skydiving or diving often have to pay three to four times more for their term life insurance than someone who does not smoke and has no dangerous hobbies. The state of health also plays a decisive role. You should always tell the truth here, if you keep something secret or provide false information, you may lose your insurance cover.
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