Death, Life, Group, Outstanding Balance Insurance: you are not familiar with all these concepts, and you find it difficult to sort them out? Let’s dive straight in, even if we all agree it is not the most pleasant topic to read or discuss.
Your spouse passes away prematurely and leaves you with a single salary, children at university, a mortgage to be repaid and household bills that continue to come in every month. Either you have everything planned and your life, at least financially, will continue as before, or unfortunately you will have to make choices that will never be very pleasant.
Planning today with death insurance could prevent your loved ones from having to make too many sacrifices if something should ever happen because death incurs new costs in addition to all your other usual costs.
Which insurance policies cover death? Let’s have a look.
"}},{"componentType":"sectionTitle","title":"Outstanding balance insurance"},{"componentType":"paragraph","richBody":{"value":"Helping your spouse, or even your children, repay the mortgage on your home is the purpose of the mortgage protection insurance. You decided to buy your property together, but you may not be able to finance it fully together. Will the surviving spouse or children succeed in taking on such a burden with just one salary over a prolonged period?
To face this eventuality, many Belgians take out loan protection insurance or the bank imposes it on you when you take out your mortgage loan. Thus, if one of the spouses dies, the insurer would be clear the balance of the mortgage, depending on the level of coverage of the policy. If you didn't do so when taking out the loan, taking the initiative now is a real gift you leave to your loved ones: the guarantee that they can stay in their family home.
Protecting your loved ones in the event of premature death is why you take out death insurance, preferably one policy per spouse.
You set up a capital or several capitals depending on what you want to cover to help your family overcome the challenge. Knowing that certain expenses will increase further and that new ones may appear (schooling, running expenses, life plan, inheritance, etc.), it is more prudent to take out this type of insurance.
The premium to be paid will, of course, depend on the capital to cover and your state of health (determined by a questionnaire or medical examination). Generally speaking, the earlier you start, the lower the premium and the paperwork is simpler.
You choose the duration of your contract. You can subscribe for a limited period that covers, for example, the transition period between life before and after death, or the time your children graduate, or the period of your remaining working life before your retirement, etc.
In any case, you can terminate your contract at any time.
"}},{"componentType":"sectionTitle","title":"Life insurance or group insurance with death cover"},{"componentType":"paragraph","richBody":{"value":"Life insurance allows you to save capital through one-off or periodic premium payments that you will make during the life of the policy. Once the specified date has been reached (e.g. at your 65th birthday), you will receive this capital (plus interest) in full or on a monthly basis (annuity).
In addition to this, there is also a supplementary life insurance death cover that provides that the capital returns to the designated beneficiaries if the insured dies before the maturity of his/her long-term savings.
The group insurance set up by the employer names the insured person as the first beneficiary in the event of life. Generally, it can also be accompanied by additional cover such as death or incapacity for work. The death cover will most often designate close family members as the beneficiary.
"}},{"componentType":"sectionTitle","title":"Funeral insurance?"},{"componentType":"paragraph","richBody":{"value":"Death insurance is often confused with funeral insurance. The latter only intervenes to cover the funeral costs. 47% of participants in the Financial Peace of Mind Barometer did not know this difference.
"}},{"componentType":"paragraph","title":"Adapt your contracts","richBody":{"value":"Your family situation may change during the life of your contract (marriage, adoption, divorce, etc.) and it may no longer be representative of your situation.
In this case, it is best to adapt your policy so that your loved ones are protected as best as possible.