A risk-life insurance insures the person who dies (whole life insurance) or becomes inable to work (insurance for inability to work) and thereby triggers the insurance benefit. Whole life insurance therefore covers the financial risk in the case of death. If an insured person dies during the duration of the insurance, the beneficiary parties receive the insured money.
Depending on the type of life insurance, the insurance premium is composed of various partial premiums. With risk-life insurance, the insurance company charges a risk premium for risk coverage. The risk premium in the case of whole life insurance is calculated based on the probability of death. Decisive factors for the amount of premiums are, apart from the amount of benefits, primarily the age and sex of the insured person as well as certain factors influencing the health condition, e.g. smoking. Another part of the premium is the so-called cost premium. It includes acquisition, debt collection and administration costs. The insurance company charges each client with a part of these costs.
Whole life insurances basically offer two options. On the one hand concerning the amount of insured persons or, on the other hand, concerning the insurance benefit. In the whole life insurance comparison by comparis.ch, we show both options with constant and decreasing insurance benefits.
Constant and decreasing insurance amount
In the case of whole life insurance with a constant insurance amount, the insurance sum remains constant during the whole duration of the insurance. In the case of whole life insurance with decreasing insurance amount, the insured sum decreases by a certain amount each year. The insurance benefit in the case of death of the insured person is a lump sum in the case of death for both options.
If a whole life insurance is taken out with a constant or a decreasing insurance sum, depends on the purpose that is supposed to be reached with the insurance. If the need for asset of the beneficiary party in the case of death of the insured person does not decrease during the duration of the insurance, you should select a constant insurance sum. If the need for asset of the beneficiary party in the case of death of the insured person constantly decreases, premiums can be saved by selecting a decreasing insurance amount.
The comprehensive comparison by comparis.ch allows you a non-binding comparison of different whole life insurance products by Swiss life insurance providers.