What is commonly called “life insurance” can take many forms .
Life insurance is an insurance contract in which the insurer undertakes to pay a sum of money in one of the following cases:
On a date fixed in advance if the insured is alive, for example the day of his 65th birthday (life insurance).
On the death of the insured (death insurance).
A combination of the two is also possible. A sum of money is provided in the event of survival on a specific date or in the event of premature death (mixed life insurance).
The term life insurance covers different forms of insurance. Often we speak of life insurance to also designate insurance in the event of death. The reasons for subscribing to it may therefore vary from one form to another.
Life insurance is aimed at people who, at some point in their life, wish to have additional capital to carry out certain projects. In the context of life insurance, the insurer pays a capital or an annuity agreed in advance, provided that you are still alive at the end of the contract.
This insurance can be useful, for example, if after your professional career you wish to have additional income in addition to your legal pension to maintain a comfortable standard of living. In the specific area of pensions, you can take out pension savings insurance .
Death insurance is aimed more at people who want to build up a financial reserve for their loved ones in the event of (premature) death. Consider the financial consequences for your partner and children if you die and your income disappears? Will they still be able to pay the bills? Will your children be able to continue their higher education? Will your family still be able to repay the mortgage? Will they be able to pay inheritance tax?
Mixed life insurance combines the advantages of death insurance with those of life insurance. It protects your family against the financial difficulties that could arise if you were to pass away and, at the same time, it can provide you with a pear for your thirst when you retire.
Such insurance allows you to build up capital through a savings plan for a defined objective. For example, because you have three young children whom you wish to support in their studies. You will then receive a sum of money on a date fixed in advance. And if you die prematurely before that date, the money can be paid to them.
