Without a doubt, the most precious good of a person is not the wealth has acquired throughout his life, but life itself during which he can acquire wealth and have a family. Life insurance, or family protection, provides financial coverage to the insured’s members family and/or his business, in case of premature loss of life.
What is covered in a life insurance contract:
- Debt payment – loan payments and credit card payments
- Guarantee of the quality of life for the members of the family
- Guarantee of the daily family costs of living
- Tuition fees expenses – children studies
- Expenses of financial rehabilitation of the family members
- Expenses of conservation and maintenance of assets
- Cover of financial costs
- Expenses for inheritance taxes
- Expenses for business needs
To whom life insurance – family protection is addressed to?
The life insurance cover is addressed mainly to people that due to an early death, would have financial effects on their family in terms of survival. Also is addressed to business owners that due to death, would have financial effects on their business.
Types of life insurance contracts:
Life insurance can be term, lifetime, reduced capital or mixed.
- Simple term life insurance – gives the ability to the insured to ensure capital for their beneficiaries for a specific period of time (10-20-30 years).
- Lifetime life insurance – gives the beneficiaries, the amount which has been agreed in the contract, anytime the death of the insured may occur.
- Reduced capital life insurance – an amount is paid to beneficiaries, which is reduced annually, in order to pay off loans (usually mortgages).
- Mixed life insurance – annuity and survival as it is often referred to, a particular insurance category, as it guarantees: either to the beneficiaries the capital that was agreed upon signing up the contract or to the insured, who is alive, the capital that has been agreed for a specific period.
- Monthly income – gives to the beneficiaries a specific montly income for a specific period.
How are the premium fees calculated:
The fees for a life insurance contract are dependent upon: the capital we want to guarantee for the beneficiaries, the age of the insured, the danger of his/her profession, the duration we want to ensure the capital for and the type of insurance contract. Factors that may affect the fee calculation are the health history of the insured, any participation in dangerous sports etc.
Indicative calculation of premium:
- 40 years old, office employee, for an insured capital of 100.000€, for a 20-year insurance, the cost of the premium will start from 17 €/month.
- 50 years old, office employee, for an insured capital of 100.000€, for a 10-year insurance, the cost of the premium will start from 39 €/month.
(The premium is calculated with program Term – Life/ Generali)
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