What types of life insurance are there?
Risk
Risk life insurance insures financial losses that occur due to death or through disability. Did you know? Experts also talk about biometric risk in this regard.
Term life insurance
In the event of a death, the policyholder’s surviving dependants (family or a named person) are covered against the financial and economic consequences through term life insurance. They receive an agreed pay-out, the guaranteed lump-sum death benefit.
Occupational disability pension
In the event of occupational disability, an occupational disability pension with guaranteed benefits is paid out. This is designed to close the income gaps that arise after a drastic event, such as illness or accident.
Savings life insurance (Pillar 3a/3b)
These products contain the benefits of a risk policy and enable capital to be saved for the period after retirement and long-term pension provision to be built up. They are often called combined life insurance and can be taken out either as tied pension provision(Pillar 3a) or flexible pension provision (Pillar 3b).
Unit-linked insurance is also a form of savings life insurance. Depending on the situation, these products can generate a higher return compared to traditional deposits (such as with a bank). To be able to accumulate enough assets for retirement provision, capital is increasingly built up through investments on stock markets. Experts recommend combined models for those who build up reserves with shares and make provision. In these instances, part of the money is invested in shares and the other half earns fixed or variable rates of interest. There are various providers on the market and the respective offers should be carefully compared.