Life insurance – this applies and it works


Life insurance does not help in grief.

But it can mean that loved ones can get through their worst time in life, without having to move or give up their dreams.

But there are also life insurance policies that can make you rich. Assuming you reach a certain age.

A life insurance policy helps your relatives to settle all or part of the loans you have taken and cover up for loss of income.

What types of life insurance are available?
There are two types of life insurance, a more expensive one that is a combination of savings and life insurance and where you get a sum of money when you turn around 75 years. More about it further down.

The large insurance companies also offer life insurance which is a little cheaper, but which has no repayment at a certain age.

What does a life insurance cost?
Here you pay a small amount when you are young and a little more when you approach the retirement age. If you are 30 years, for example, a life insurance costs SEK 22 a month with an insurance amount of SEK 500,000. The same insurance costs SEK 50 a month for a 50-year-old at Folksam.

What is the difference between life insurance and loan protection?
A loan protection is an insurance policy that solves all or part of the loans for which you have subscribed. One, of course, does not exclude the other. With both loan protection and life insurance, survivors may not have to think about repaying loans, at the same time as they receive a lump sum.

You cannot, however, take out a loan protection for reduced household income.

Can I have multiple life insurance policies?
Yes, it’s no problem. However, you cannot have several non-life insurance policies. You cannot have three car insurance and receive compensation three times for each damage. However, your relatives can obtain life insurance from three different insurance companies.

What is life insurance with child protection?
It is a life insurance where even your children under 18 are covered. In the case of the insurance company Avanza, a price base amount (SEK 45,500 2018) is paid out if a child dies before the age of 18.

This is life insurance as a kind of savings
A life insurance is a kind of personal insurance that is linked to life, health and work ability. First in Sweden was the General Äkke and Pupillkassan, which was founded in 1740, where among others Carl Michael Bellman worked. The idea of ​​life insurance came to Sweden when women’s livelihood was entirely dependent on the man’s income.

There are two types of life insurance, endowment insurance and annuity insurance.

What is a life insurance?
Capital insurance is an insurance policy in which one or more beneficiaries receive money at a given time. It can be designed in two ways:

 Money is paid out on death before a certain age.

 Money is paid when the policyholder reaches a certain age.

It is also possible to write an insurance covering both – if the policyholder dies before a certain age, the beneficiaries receive money to be able to stay or continue their education. When the policyholder lives at a certain age, a sum is paid out. It can be much higher than the insurance amount itself.

What is an annuity insurance?
An annuity insurance is a type of insurance where the company pays out money for a limited period and starts at an agreed time.

What does a life insurance cost of this kind cost?
It varies dramatically depending on age, how long the insurance will apply and how large the insurance company pays out if the person dies.

If you are 30 years old and want to take a life insurance policy that is valid for 40 years, with an amount of SEK 1 million, it costs SEK 180,000 if you want to pay the entire sum directly at the General Äkke and Pupillkassan. But then, after their calculations, you will get back a million kronor when you turn 70.

If you choose to pay annually, the insurance costs SEK 5 246 per year and 1,400 a year after 20 years. But you only get 180,000 kronor back when you turn 70.

Which insurance suits me best?
If you want to take a life insurance, it is important to reason through your family relationships and who should be the beneficiary.

If you are a single person without a maintenance obligation, you may want to consider an insurance that pays out money to you when you retire and lose income. In that case, it works rather like a pension insurance.

How do I figure out which insurance suits me best?
The important thing is to figure out how much you contribute to your family’s livelihood. If you pay half or more for accommodation, food, insurance and other expenses, you should include it in the calculation. If you also have loans, credit card credits and current installments, you should bring it along.

Most life insurance policies are subscribed for in an interval of half a million SEK, with SEK 500,000 as the lowest amount.

What is the difference between life insurance and accident insurance?
In addition to the obvious, the big difference is that life insurance is more of a savings, you pay into your insurance, regardless of others.