With a term life insurance (overlijdensrisicoverzekering, OVR) you ensure that your family will have a sufficient income after your death. Your partner and children will then receive a benefit over a certain period.
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What is term life insurance?If someone in paid employment dies, their partner and children receive a survivor's pension. This is not the case for independent entrepreneurs. If you die, your family is not automatically entitled to such a benefit. Do you want to make sure that your family will not get into financial trouble when you die? Then it is sensible to take out a term life insurance policy. With a term life insurance policy, your partner and children will receive a predetermined amount in the event of your death.
How does a term life insurance policy work?You can insure yourself in various ways.
Level term life insuranceWith a level term life insurance policy, you are insured for a fixed amount at a fixed premium for the entire term. That means it make no difference whether you die early on or only at the end of the term. The amount that your surviving dependents will receive will always remain the same.
Linear decreasing term life insuranceWith a linear decreasing term life insurance, the amount that your surviving dependents will receive decreases each year by a fixed amount. The premium you pay also decreases. This form is especially interesting for older self-employed professionals: the older you get, the less your dependents’ need for benefits.
Annuity decreasing term life insurance
The amount that your dependents will receive also decreases with an annuity-based decreasing term life insurance policy. The amount decreases less rapidly at the beginning of the term than at the end. Your premium also decreases during the term. The annuity decreasing term life insurance is often taken out in combination with an annuity mortgage.