Comparing life insurance – a decision for life

Before you compare life insurance policies, you need to understand the most important differences:

• Risk insurance: This insurance offers financial protection in the event of death or disability and pays out a fixed sum or annuities to your loved ones.
• Savings insurance: This combines elements of risk insurance with a savings component. A large proportion of the premiums are invested with a view to generating a return and paid out as capital at the end of the term.
• Single premium: This type of insurance combines a one-off investment in return-oriented investment vehicles such as investment funds with risk insurance (death cover) and possible tax benefits.
• Annuity insurance: Annuity insurance policies pay out regular sums that have been saved up in advance through premiums or financed by single premiums. Elements of risk insurance are also included.

The best life insurance is the one that suits your life, your loved ones and your plans for the future. It is therefore worth pausing to reflect carefully on your personal situation and your goals.

• What purpose should life insurance serve for me? 
  Do you primarily want to insure your family in the event of your death? Or would you like to build up assets, optimize your tax situation and provide for your retirement at the same time? The more clearly you define your goal, the better you can choose the right type of insurance.
• Do I have enough savings or other financial resources to cover my family in an emergency? 
  Ask yourself honestly: Would your loved ones be able to manage financially without your support? Or are there gaps that you would like to close with a life insurance policy?
• What standard of living do I want to secure in the event of disability or death? 
  Do you want basic cover – for rent, education or everyday costs, for example? Or would you like to maintain a certain lifestyle, ensure the affordability of a mortgage, or leave a legacy in the event of your death?
• Am I prepared to pay regular contributions over a longer period of time? And how much can I afford to pay each month? 
  Life insurance is a long-term decision for your future. Think about how stable your financial situation is and how much you can afford to pay in the long term without restricting yourself. 
• Do I already have other insurance or retirement products that should be taken into account? 
  Do you already have insurance or savings? Then check how these can be combined with life insurance – or whether there is excess cover that can be avoided.

These questions are a valuable compass on your way to the right decision. Take the time to answer them honestly. Our pension advice can help you to classify the answers correctly and develop a solution that really suits you and your life.

The decision to take out life insurance is as individual as your life – shaped by your wishes and the people you care about. To find the right solution, it is worth taking a close look at these criteria in particular:

1. Premiums and payment methods: Check whether the premium amount is suitable for your budget. Compare monthly and annual payment options, as annual payments are often cheaper. Also pay attention to the flexibility of payments if your financial situation changes.
2. Insurance cover and benefits: Make sure that the insurance covers the desired benefits. This includes the lump-sum death benefit paid out to the beneficiaries, as well as a possible disability pension and additional benefits such as premium waiver in the event of disability.
3. Term and termination conditions: Find out about the minimum term of the policy and the conditions for early termination. Pay attention to notice periods and surrender values to know what the financial consequences of premature termination of the contract could be. 
4. Flexibility of the policy: The birth of a child, illness, marriage or divorce sometimes require you to adjust your retirement provision. You should therefore check whether you can flexibly adapt your life insurance to changing life situations – for example, by including additional cover or increasing your insurance coverage without having to undergo another health check. So you and your loved ones remain optimally protected even in new phases of life.
5. Restricted and unrestricted retirement provision: Note the difference between restricted and unrestricted retirement provision. The restricted pension plan (pillar 3a) offers tax advantages, but comes with restrictions regarding the use of the funds. The unrestricted pension plan (pillar 3b) is more flexible to use, but offers no direct tax advantages. Further information on the differences between pillar 3a and 3b is available here.
6. Tax advantages: Check whether life insurance offers tax advantages, particularly in the context of a restricted pension plan (pillar 3a or, under certain conditions, single premiums in pillar 3b). These can offer significant savings and reduce the overall cost of insurance.

Finding the right life insurance is a decision for life and is not one to make on a whim. This step-by-step checklist will help you find the solution that really suits you: 

• Pension gap calculator: Determine your individual pension gaps.
• Online calculator for savings insurance 3a/3b: Calculate your potential savings.
• Online calculator for disability pension: Determine the necessary insurance coverage in the event of disability.
• Online calculator for whole life insurance: Calculate your death premium for the protection of your loved ones and take out a policy directly online.