Term Life insurance

When we die, major financial consequences can follow. Those dependent on you may have an income problem, when you are no longer the primary breadwinner. 

They can also be confronted with your debts, funeral costs or an unpaid mortgage. By taking out Term Life insurance, you protect your family against these kinds of financial consequences. 

Different variations

For Term Life insurance, there are variations with regards to the duration (maturity) of the insurance and the insured amount (capital).

In regards to the duration, you can choose between:

  • Lifetime Term Life insurance.
  • Interim Term Life insurance.

In regards to the insured amount, there are the following options:

  • Level Term Life insurance.
  • Annuity Decreasing Term Life insurance.
  • Linear Decreasing Term Life insurance.

What does it cover?

Lifetime Term Life insurance pays out a specified benefit, regardless when you pass away before the maturity date of the policy. This insurance is an alternative to funeral or inheritance insurance.

Interim Term Life insurance does have a maturity date. This insurance only pays out the benefit in the event of death before the agreed upon maturity date. If you are alive at the policy’s maturity date, then the insurance expires without any benefit payout. This insurance is often taken out in combination with a mortgage, for repayment of a debt or to provide for your family in the event of your (the breadwinner’s) death.

Read our article: “Income after death of your spouse

With Level Term Life insurance, the same benefit is always paid out, while with Decreasing Term Life insurance, the benefit decreases over the term of the insurance. Linear Decreasing Term Life insurance is often used when the expenses to be paid for by the benefit decrease annually. This takes into account reducing the expenses or building up assets over time.

Think, for example, of a mortgage or a line of credit where the debt decreases annually. The Annuity Decreasing Term Life insurance is usually taken out in combination with an annuity mortgage. 

How much does Term Life insurance cost?

The premium for Term Life insurance depends on the variation and insured amount you choose, plus your age and your gender. Your choice depends on your financial situation and your personal wishes. It is important to examine exactly what you need and to make sure that you are neither over insured nor underinsured. Our insurance advisors can assist you in creating an inventory based on your wishes and mapping out the possibilities.