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Losing a loved one is already so hard on us, let alone when we are faced with the gigantic financial need for its funeral.
This is where the term life insurance comes in. Should an insured party dies during the term of the insurance cover, the beneficiaries will receive a one-off lump sum payment that can be utilized to pay off bills, part of a mortgage, further their education, or even cater for your funeral..
ABN AMRO’s term life insurance
ABN AMRO’s term life insurance permits you to enlist beneficiaries who will be entitled to your financial benefits when you die. In return for a monthly premium, you can state how much the beneficiaries are entitled to, the length of the policy term, and who receives the amount after the death of the insured.
Who it is for
Term life insurance is available for those between the ages of 17 and 70. In order to apply for this Insurance, you will need an ABN AMRO current account.
Life insurance cover might be beneficial for a payout after your death if you:
- Own or want to buy a home;
- Request for a loan;
- Are your family’s breadwinner;
- Already have an old cover (often higher) premium;
- Are getting married, moving in with your partner, or expecting a baby.
Existing term life insurance?
You should know that premiums for term life insurance have reduced drastically in recent years, so, if you already have a term cover, you can lower your premium by obtaining a new policy. Therefore, that you cancel out your existing policy once your new application is approved. With this, you can now be paying a lower premium.
Please note: you will need to pay ABN AMRO Bank a one-off handling fee of €175 when you take out a new term life insurance policy.
What Is Insured
When you die, the term life insurance will pay a one-off lump sum to the beneficiaries listed on the policy. You can specify the insured amount yourself, according to the purpose of your insurance. You decide if the amount decreases or stays the same over the policy term.
You can choose up to three types of term life insurance:
- Decreasing insured amount – annuity: Here, the one-off lump sum decreases annually by an annuity percentage selected by you.
- Decreasing insured amount – straight-line: The one-off lump sum to be paid to the insured party upon its death decreases annually by a fixed amount as stated on the policy term.
- Level insured amount: Also, the one-off lump sum to be paid to the insured remains the same for the entire policy term.
You can insure up to a maximum of €5,000,000.
On some occasions, the beneficiaries may not receive any compensation. This can occur where the insured party’s death is caused by one of the reasons below:
- The insured committed suicide within 2 years of the start of the policy.
- The insured life was terminated by an act or assistance from one or all the beneficiaries under the insurance policy.
- war.
Where the insured dies within 10 years of taking out the policy, the insurer will go through thoroughly the submitted documents during the application. If any of the documents submitted has an error, with omission or non-disclosure, for example, not listing any health issue (s) the insured is suffering from, the insurer will not pay the beneficiaries.
Costs Of Life Insurance Cover
Your premium depends on factors such as the following:
- The amount you insure;
- The type of insurance;
- The term of the policy;
- The age of the insured party or parties.
- Whether or not the insured party or parties smoke.
Discounts
If you or the insured has not smoked for the past 2 years, you will enjoy the lower non-smoker rate.
Tax
You can split your premium to avoid inheritance tax on the term life insurance. This is known as ‘reciprocal premium payment’ or ‘cross-premium payment’.
Handling fee
You will have to pay ABN AMRO Bank a one-off handling fee of €175 when you take out a policy.
When the insurer will pay out
The beneficiaries will only be paid by the insurer when the insured party dies before the policy’s end date. If there are two insured parties, the sum will heboaid once. The insurance policy ends immediately after the insured party has died.
Submitting An Application
While applying for a term life insurance policy, it can take a few days or weeks to get approved depending on the requirements the insurer may request an assessment length if your application.
Note: Where you’re to take out medical certification, the process might take longer.
However, you can enjoy provisional covers which are:
- Limited provisional cover: This is applicable where the applicant dies of an accident. This provisional cover starts immediately after your application is submitted to the insurer.
- Full provisional cover for the risk of an insured party dying: Here, the insured party is covered even when its death is not caused by an accident. This starts immediately after your application is approved, while the policy ties effect at a later date.
The provisional cover applies for up to a maximum of 3 months, even when the policy has not taken effect yet. The beneficiaries will receive the insured amount applied for, up to a maximum of €500,000.
Where there are multiple Insurance policies applied for, the total maximum amount still remains at €500,000 provisional cover per insured. This does not apply per policy.
Canceling your policy
You can cancel your policy quickly and easily online.
Please note: if you cancel the policy early, the beneficiary will not receive a payout, as the policy does not have a surrender value.
Insurance card
The insurance card covers the most relevant cover information you may need. The insurance card has been compiled in line with European guidelines and provides an easy overview to help you compare policies.
Insurance card for ABN AMRO term life insurance
Good reasons to take out ABN AMRO term life insurance
- Increasing the insured amount: You can annually increment the insured amount without completing a new health certificate. Though, it’s subject to certain conditions.
- Temporary accident cover: Your beneficiaries will still receive a payout if the insured dies before the insurer approves the application.
- Attractive non-smoker rate: When you did not smoke within 24 months prior to submitting the application, your premium will be lower.
