Death and funeral insurance, is it really worth taking out?

An accidental death can cause financial problems for a family. To cover risks for this, there are special insurances, especially death insurances. What is the definition of life insurance and Should I take out life insurance? What are they different types of death insurance contracts ? These are the main points that will be covered in this article.

What is death insurance?

Figures from the Norwegian Institute of Health and Medical Research are frightening by suggesting that one in five deaths occurs before the age of 65. In order to relieve the family after the death of a loved one, said person may take out life insurance. But what do we mean by life insurance?

Death insurance is a piece of insurance that allows you to provide an annuity or a capital to relieve the family if a death occurs and to help them meet their needs.. The family has an obligation to pay bills, inheritance costs, etc. In addition, the death insurance also allows children to continue their studies. Like any form of insurance, it is a contract between two people, the insurance company and the subscriber.

Therefore, death insurance is considered a pension solution. Through this insurance, the insurance company actually undertakes to pay an amount to the beneficiary if an accident occurs.

The ultimate goal of life insurance is to provide your family with income after your death.

What is funeral insurance?

Funeral insurance is one contract by which a person undertakes to prepare the financing of his funeral. This is an agreement dedicated to financing the funeral of the deceased. Its purpose is to anticipate the costs associated with the funeral ceremony (coffin, transport of the body, etc.).

In case of death, the cost of organizing the funeral costs an average of 4,000 euros. A sum that may be a bit expensive for some.

In order to relieve these relatives of the organization of the funeral and the costs incurred, the subscription to a funeral insurance is preferable.

The benefits of insurance

To answer the question: should you take out death insurance, let’s find out the benefits of life insurance. We have previously explained that death insurance is a contract entered into between two persons, the ultimate outcome of which is the payment of capital in the event of the subscriber’s death.

It is a solution that has several advantages, which is why more and more people choose this contract. The first advantage of this insurance is that it allows it financially protect your family, more precisely the beneficiary of the contract, if you accidentally disappear. Then this contract can also be an educational annuity to allow children to continue their studies if something bad happens to their parents.

Death insurance can also be a spouse’s pension.

Finally, the last benefit of life insurance is the option not to sell real estate after your partner’s death. In fact, when a partner dies, the family’s income decreases. By signing this contract, the previously paid capital will avoid the sale of real estate.

The different types of death insurance contracts

There are two types of death insurance contracts. The first contract can be signed for a limited period term life insurance contract. In contrast to this first type of contract, the second is called whole life insurance. Let us explain in detail these two types of life insurance contracts.

The term life insurance contract

For this type of death insurance, a capital or an annuity is paid out on the death of the subscriber. It is important to note that the death of the subscriber for this contract occurred during the term of the contract. If the signatory is still alive at the end of this period, the contract will be terminated. It is important to note that for the life insurance contract, the contributions paid by the subscriber will benefit the recipientsbut will not be restored.

whole life insurance

In the case of whole life insurance, the subscription has an indefinite duration.. This policy terminates on the subscriber’s death, regardless of that date. It provides subject to an annuity or capital payment to the beneficiary. This capital can be used to pay for the funeral, to guarantee the income of a disabled child or to support the family’s financial situation.

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