Why do I have four life insurance policies?

Private life insurance, pension life insurance and mortgage life insurance. All of these can be necessary for anyone. Get to know the options

Do you have life insurance? Don’t rush to answer, because you may have it without knowing it. For example, does your pension plan have a life insurance component? Do you have mortgage insurance?

In short, everyone can have several life insurance policies at a given moment. Let’s get to know them.

Private life insurance – a personal policy that provides financial compensation in the event of death. The compensation is paid as a lump sum to beneficiaries determined by the insured.

Pension fund life insurance – part of the provisions for the pension fund, up to a certain ceiling of the total pension provision, can be designated for life insurance called a survivor’s pension. The compensation is paid monthly to the spouse and children according to the pension fund regulations.

Life insurance in an executive insurance policy – ​​the same principle as in a pension fund, with one difference – in executive insurance, the insurance amount is paid in a lump sum and the insured can determine who the beneficiaries are as he wishes.

Life insurance as part of mortgage insurance – if you have a mortgage, you have mortgage insurance, which includes building insurance and life insurance. These insurances are designed to protect the mortgage, and in both cases the beneficiary is the bank.

Planning a personal life insurance system

Life insurance has one goal – to provide beneficiaries, usually the nuclear family, spouse and children, with a means of subsistence when the insured dies or becomes permanently disabled (depending on the policy). This is the most basic protection that a person can provide for their loved ones.

The need for life insurance changes over time depending on the personal and family status of the insured. For example, the need for life insurance is high when there are small children at home, and decreases when the children leave the nest to go their own way.

It is, of course, also possible to balance the coverage under a private policy with the coverage under the pension plan, so that they complement each other.

Please note! Mortgage life insurance is not part of the personal and family protection basket, because when the policy is exercised, the amount is paid to the bank!

Managing the personal and family life insurance mix is ​​one of the most important roles of your insurance agent.

It is recommended to be in contact with the agent prior to any significant change in your life, to ensure that you have optimal coverage for current needs – starting a family, expanding the family, children leaving, a change in career. Each of these life events, and many others, may affect your life insurance needs, and the right mix for you.