In Germany, life insurance is also referred to as risk life insurance, written as Risikolebensversicherung (RLV).
It is one of the abundant insurance covers enjoined by many other types of insurance in Germany, including health insurance for employees, ex-pats or residents, legal insurance liability insurance, or home insurance.
Life insurance is important as its coverage ensures that in the event of the death of an insured, the dependents will be unburdened with all financial difficulties which were covered by your income.
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WHAT YOU SHOULD EXPECT
In this article, I will introduce to you the benefits of Allianz Leben’s life insurance company in Germany.
Remember, there’s a mandatory order that everyone living in Germany should be under life insurance cover. If you’re not under any cover yet, you should seek for your attorney/accountant to assist you to get insured.
WHAT IS LIFE INSURANCE IN GERMANY ALL ABOUT?
A life insurance policy in Germany sees to ensure that in the event of the death of an insured individual, the insurance firm will have to compensate the dependents of the insured sum amount of money.
These dependents or beneficiaries as may be interchanged are preselected individuals by the insured person to who it wishes its compensation be paid to. The payments to be made on your demise could be used to sort your funeral ceremony, further your children’s education, or even pay off debts you owe before you die.
Life insurance in Germany assures that the lack of funds will not be a reason your debts or financial burdens will not be cleared on your beneficiaries.
A CASE STUDY
As said during the introductory stage, there are many life insurance companies in Germany of which Allianz Leben is part of them. We picked Allianz Leben because, it has been a great, reputable, and recommendable life insurance firm in Germany for the past decades.
ALLIANZ LEBEN LIFE INSURANCE FIRM
As briefly explained earlier, a life insurance policy is a contract between you and an insurance company the main goal is to provide financial benefits (which are generally income-tax-free) to your beneficiaries after you die.
As said, the death benefits could help in many ways, but not limited to:
- Cover funeral expenses
- Pay a mortgage
- Supplement educational expenses
- Replace lost income
- Protect the value of an estate; and more.
LIFETIME LIFE INSURANCE COVERAGE
With Allianz Leben, you can be insured for a lifetime. Their package which includes a fixed index universal (FIUL) insurance, is a type of permanent insurance coverage that keeps you covered even after death.
This policy can only be maintained when your policy is sustained – typically, that’s the rest of your life assuming you pay the required premium for such cover. Another package you could enjoy with Allianz Leben is the insurance term which provides death benefits for a specific time.
WHY YOU MAY NEED FIXED INDEX UNIVERSAL LIFE INSURANCE
- OTHER PERMANENT LIFE INSURANCE POLICY: Apart from FIUL, there are other types of permanent life insurance policies offered by Allianz such as the whole life, universal life, and variable life insurance. But, with FIUL, you could also enjoy all these benefits since it combines all other types mentioned above to suit your financial concerns
- Protection: Death benefits as will be received by your dependents is generally income-tax-free.
- Accumulation potential: With FIUL, your policy’s accumulation value will earn interest due to some external index or where you’re on a fixed interest option. I will explain further below.
- Tax deferral: Your policy’s accumulation value grows tax-deferred.
- Flexibility: When you fund your policy as required by the policy you choose, you will be able to pay your premiums when you wish and also have access to your available cash value through policy loans and withdrawals
Funding your policy properly will see you enjoy payment flexibility. That means, you can pay your premium when you wish and at an amount that will allow you to cater to your other financial needs.
YOUR ACCUMULATION VALUE GROWS TAX-DEFERRED
With FIUL, you can earn accumulation value in two ways – at a predictable, fixed rate, or based on the annual positive return of an external market index.
Your interest when available is locked in and it grows tax-deferred until you pull out funds from your policy.
ACCUMULATION VALUE IS PROTECTED
When selecting accumulation value interest, with the indexed interest option, any indexed interest you received is based on an external index in which you’re not participating in the market. It’s the benefit of insuring with Allianz Leben.
With this, your accumulation value can’t go down when the market is volatile. However, fees and charges will still reduce the policy’s value.
ACCESS CASH VALUE
On this policy, you have access to your cash value. You can be able to access your policy’s available cash value through the income-tax-free loans and withdrawals for any purpose you intended to use the funds for.
Since loans and withdrawals will reduce your policy’s value, it is pertinent that you pay close attention to your policy value and make sure you fund it so as not to let it run down.
TAILOR YOUR POLICY TO YOUR NEED
It is advisable to seek for a policy that will best cover your need, and at the same time, suit your financial capabilities.
That’s why we suggest in exchange for an additional cost and with some restrictions, not bypassing underwriting, you should add other coverages like chronic illness benefits, premium payment waivers, extra term coverage, and more.
If you think you can’t pick the options suitable for you, your auditor or financial therapist may suggest to you the coverages request as it will suit your financial standing and solve most of your unique financial needs.
Your dependencies receive a death benefit that is generally income-tax-free. This could go as far as covering your funeral ceremony, and medical bills during your treatment, serve as income for the main time, and can also ensure continuity of your business when you pass away.
Allianz was named the world’s ‘Best Insurance Brand’ again in Interbrand’s Best Global Brands ranking 2021