For whom is life insurance worthwhile – and why?


Does taking out a life insurance policy make sense for me or not?? To answer this question adequately, one must consider diverse factors: One's personal circumstances, one's need for security, and one's responsibility for other people are among the essential. But other criteria also play a role. An overview.

"Life is what happens while you are busily making other plans." This line was penned by John Lennon and can be heard in his song "Beautiful Boy". With this sentence, Lennon sums up the essence of life: it remains, despite our best efforts to plan ahead, ultimately unpredictable. People who have already experienced a stroke of fate know this from experience. And everyone else will learn it sooner or later as well.

The life insurance model takes this unpredictability of life into account. And as with any type of insurance, the question arises: "Do I really need this protection??" To help you make your decision, let's first take a closer look at the different types of life insurance.

Life is what happens while you're busy making other plans.

Flexibility is the trump card

Many life insurance policies are composed of an insurance and a savings portion. One speaks here of so-called "mixed life insurance". But pure term life insurance is also offered, limited to covering risks such as disability and death. What both types of insurance have in common is the fact that they provide financial shortfalls in the event of death or. cover in the event of incapacity to work as a result of disability. In other words, if an insured person is no longer able to work due to an accident or illness, both they and their family are financially protected. If the policyholder dies, the surviving dependents receive financial support. Pure term life insurance is suitable for anyone who primarily wants to protect themselves against the risks of serious accident and illness or. of a death wish to insure. A key advantage of this type is its high degree of flexibility: in most cases, this form of life insurance can be terminated subject to a notice period.

With a mixed life insurance policy, the starting position is different. Because while it covers the same risks as pure life insurance, it also has a savings component. Therefore, it is taken out for an agreed fixed term (usually for a very long period) after which the saved capital is paid out.

What are my claims?

These are the basics. The question now arises for whom it is worth taking out life insurance. Due to its high flexibility, experts prefer pure term life insurance. They put forward two key arguments in favor of taking out such a policy: firstly, the fact that disability pensions from the 1. and the 2. On the one hand, the assets of the insured person in the event of death are rarely sufficient to maintain their previous standard of living. Term life insurance provides additional financial security in this case. On the other hand, in the event of death, the assets and the survivor's pension are usually not sufficient to cover the current expenses. Here, too, term life insurance covers additional financial needs.

Accordingly, term life insurance is particularly suitable for families with children. This is because in the event of an accident resulting in death, survivors generally receive only 80 percent of their previous salary from AHV, 1. pillar, the pension fund, the 2. Pillar and from the mandatory accident insurance scheme. In the event of death due to a terminal illness, the statutory benefits are even significantly lower. Term life insurance is suitable for covering fixed costs such as rent or mortgages, as well as maintenance costs. For these reasons, term life insurance is also suitable for married and cohabiting couples. The latter in particular must be aware that, in the event of death, only married couples are entitled to survivors' benefits. This makes term life insurance even more important for the protection of unmarried persons.

The self-employed can also benefit significantly from this form of insurance. Because in the event of disability or even death, good coverage for the person concerned and any business partners is crucial. In addition, by no means all self-employed persons in the 2. The policyholder can take out insurance under the second pillar, as this is voluntary for them.

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