Money What is life insurance good for?

12:20  01 june  2020
12:20  01 june  2020 Source:   pressfrom.com

Coronavirus: A court rules in favor of a restaurateur against Axa, who refused to compensate his losses

 Coronavirus: A court rules in favor of a restaurateur against Axa, who refused to compensate his losses The restaurateur Stéphane Manigold won his case against Axa, who refused to compensate his losses related to the coronavirus crisis © AFP Stéphane Manigold, President of Maison Rostang, Groupe Eclore, sent on April 16, 2020 to the Paris Commercial Court a request for provisional formal notice against AXA France after the insurer refused to compensate the operating losses following the administrative closure of one of its restaurants.

But what about life insurance ? If you haven’t gotten around to it yet, you’re not alone: Last year How Does Life Insurance Work? Reading a life insurance agreement can feel like the most Bottom line: Term life insurance is your best option because life insurance should be protection and security for

The Best Life Insurance Choice For You Will Depend On. Why you want the life insurance (to build wealth, to protect assets, provide for your family?) What your situation is. What stage in life you are in (do you have kids, are you in school, are you starting a business, buying a home, getting married, etc.)

Anyone who takes out life insurance is actually guaranteed interest. The problem: Many insurers are currently barely able to earn this interest on the capital market. Therefore, companies attack reserves or surpluses - at the expense of customers.

Lebensversicherungen eignen sich für die Altersvorsorge nur bedingt. Oft sind die Kosten hoch und die Erträge vergleichsweise gering. © Photo: Jens Büttner / dpa-Zentralbild / dpa-tmn Life insurance policies are only of limited use for old-age provision. The costs are often high and the yields comparatively low.

Capital life insurance as a retirement plan has been lucrative for a long time because these surpluses were passed on to customers on a pro rata basis in addition to the guaranteed interest. However, since interest rates are currently low, lawmakers have been demanding that surpluses be paid into the so-called additional interest reserve since 2011. This ensures that the companies are financially able to pay the guaranteed interest to their customers.

Ségur de la santé: caregivers send their "manifesto" and their proposals to Macron

 Ségur de la santé: caregivers send their © Copyright 2020, L'Obs Upgrading careers for caregivers, equal access to care for all, catching up for psychiatry, reform of the health insurance, recasting of medical studies ... are on the program of a "caregivers manifesto" proposed on Sunday, on the eve of the opening of consultations for the "Ségur de la santé". This set of extremely detailed proposals, concerning all fields of public health, is published in the daily "Liberation".

That ’s why whole life insurance can be a lot more expensive than term life insurance . Worse still, whole life policies don’t gain as much cash value You’ve seen the commercials about life insurance for your children. You want to do right by your kids, but is life insurance the best way to invest in

What is whole life insurance ? A whole life policy provides a set amount of coverage for your entire life . As long as you pay premiums, your beneficiary If you are looking at cash-value life insurance to possibly supplement retirement income, Hunt advises that you may be better off buying term life and

Money does not flow into profit sharing

According to the Stiftung Warentest, insurers had put 65 billion euros in it by the end of 2018. "What was put into the additional interest reserve is missing in the contracts as a bonus," criticizes Axel Kleinlein, spokesman for the board of the Federation of Insured Persons (BdV). Only with a lot of luck would there be any surpluses in which the insured would then be involved.

However, the fact that there is a guaranteed interest does not mean that the insured person always ends up getting more money than he paid into the life insurance. Contrary to what many customers think, only the savings portion earns interest, not the entire contribution.

"The insurer still deducts costs for the conclusion and administration of the contract from the premium," says Theodor Pischke, editor at the magazine "Finanztest". This also applies to survivors' or occupational disability protection. So it could be that the customer will end up with less expensive insurance than he paid in. How high the proportion of such costs in the contribution is often not made transparent.

Man jailed after importing cocaine to pay for cancer treatment

  Man jailed after importing cocaine to pay for cancer treatment The Brazilian national agreed to receive two packages of cocaine inside a package containing children's books and be paid $5000 for each.Luiz Diego Mouzinho De Lima, 31, agreed to accept two packages of cocaine, which were sent to his address at Vaucluse in Sydney's east in mid-2019 under a fictitious name.

Like whole life insurance , universal life insurance is permanent coverage that builds cash value. To decide which type of insurance is best for you To find the right coverage amount when you’re buying whole life insurance , decide what you want the policy to accomplish. A relatively small policy

Best Age to Get Life Insurance . Is Life Insurance a Smart Investment? However, you can think of term life insurance as an investment in the sense that you are paying relatively little in premiums in exchange for the peace of mind knowing that in the event of your death, your beneficiaries will

Do not simply terminate contracts

, however, experts advise against terminating the contracts: "Only customers benefit from the full final surpluses that persist in their contract," said Peter Schwark of the German Insurance Association (GDV). The market average of the current interest rate is still relatively good compared to other secure investments.

But current contracts can be optimized: “If you can afford it, you should pay the premiums annually in advance. In this way, you get a better return than if the money is transferred on a monthly basis, »says Pischke. He also advises to think about which additional benefits you really need: "A single probably doesn't need survivor protection."

If you are currently concerned about securing your family in the event of your death, you should consider whether the ten-year guarantee period or a life insurance policy are alternatives. Risk life insurance is not an investment right now - and is therefore often cheaper and more transparent in terms of costs.

Tax Advice: Spouses benefit from partner expenses

 Tax Advice: Spouses benefit from partner expenses Spouses can choose whether they want to submit their income tax returns together or individually. However, even with a single assessment, the other spouse is not completely disregarded. © Photo: Andrea Warnecke / dpa-tmn Married couples can have their income tax returns invested together or separately. Anyone who decides to invest individually may still benefit from the other's pension expenses.

Life insurance is age-banded, which means that as each year passes, the policy becomes more expensive. However, younger people tend to put off buying life insurance in the face of The sooner it is purchased, the better . A parent or relative may even opt to purchase life insurance for a newborn.

Ellis stresses that life insurance covers your family against lost income by a primary wage earner. What does term life cover? The death benefit amount you choose at the start of your policy doesn't A life insurance agent can search the marketplace for a guaranteed issue policy that meets your

dynamics can cause costs

Unnecessary costs can also arise if life insurance policies include so-called dynamics. In these contract constellations, the premiums are increased at regular intervals in order to increase the insurance cover and the payment. But every increase causes costs. "At least ten years before the end of the contract, you should contradict the dynamics because then it won't be worth it," advises Pischke.

According to the financial test, some insurers in dynamic contracts simply lower the guaranteed interest on increases from the originally agreed rate to the current market interest rate of 0.9 percent. If this happens, Pischke specifically recommends threatening a lawsuit. "The insurers then often decide to keep the original interest."

Fewer interest rates for new contracts

Life insurance customers can only rely on a low return. That is currently interest of 0.9 percent for new life insurance policies. For older contracts, there is still a guaranteed interest rate of 2.25 percent or more.

However, you can no longer hope for attractive additional services. "How to properly care for old age depends on the individual's living situation," says Axel Kleinlein. "The fact that a life insurer's product is the right choice is an absolute exception at the moment."

More on MSN

JDD INFO. 650,000 acts at the end of May: the boom in telemedicine continues .
© Sipa The habits adopted during confinement continue: medical teleconsultations continue to be widely used by the French. This is at least one area in which the next world does not look like the one before. As we know, medical teleconsultations, reimbursed in France since September 2018, exploded during confinement: from 10,000 per week in early March to 1.1 million in April! Surprisingly, while the practitioners' offices filled up during the second half of May, no collapse occurred.

—   Share news in the SOC. Networks
usr: 5
This is interesting!