Term life insurance

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 this pension. 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 insurance

With a level term life insurance policy, you are insured for a fixed amount at a fixed premium for the entire term. The amount that your surviving dependents will receive will always remain the same. Both if you die at the start of the term or if you die at the end of the term.

Linear decreasing term life insurance

With 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. You also pay less premium during the term. The annuity decreasing term life insurance is often taken out in combination with an annuity mortgage.

Duration of term life insurance

You can choose between a temporary or a lifelong insurance.

Temporary insurance

This will be paid out if you die within the agreed term: this is the period during which you are insured. For example, a term life insurance that is linked to a mortgage. A mortgage always has a certain term.

Lifetime insurance

There is no end date for this type of insurance. The insurance will always pay out in the event of your death.

What does term life insurance cost?

The premium you have to pay depends on a number of factors. The most important are:

• The amount that your dependents would receive in the event of your death.
• Your age and health at the time you take out the insurance.

Your situation can change so much during the term of the insurance that you have to adjust the coverage upwards or downwards. Keep this in mind. Premiums for term life insurance are not tax deductible.

Check what other insurances you need

Have you also thought about other risks? For instance, what happens if you fall ill and are no longer able to work? Disability insurance insures you against loss of income due to illness. From 2027, this insurance will probably become compulsory.

Do you want to avoid having to pay if a client suffers damages because you make a mistake? Then take out professional indemnity insurance.

See all business insurances.