Endowment life insurance
The state coffers are empty, the topic of personal provision is on everyone's lips. The benefits of a private pension only start flowing when retirement age is reached. But how is a family protected if - which is not to be wished on anyone, but must nevertheless be considered - the breadwinner dies before reaching retirement age?

If you want to be prepared for this eventuality, life insurance is a must in your policy folder. Endowment life insurance offers worldwide protection around the clock - in your leisure time, professional life, training, studies or while travelling.

Risk protection and return at the same time
Life insurance is indispensable, especially for young families whose assets are not yet sufficient to protect them from financial hardship in the event of the death of the main earner. In this case, the life insurer immediately pays a high sum insured.

At the end of the contract, there is also money - the contractual maturity payment including guaranteed interest and additional surplus participation. With endowment insurance, you therefore achieve two pension goals at once - risk protection for your family and a good return on your savings.

When it comes to choosing the right life insurance, the life situation is of great importance. For example, young people usually still have very little entitlement to a statutory pension.

In addition to occupational disability insurance, which can be taken out at particularly favourable premiums at a young age, it is advisable to take out endowment life insurance - especially if you can use capital-forming benefits from your employer or convert salary components into a direct insurance policy as part of the company pension scheme.

Indispensable for young families
Endowment insurance is almost indispensable for young families whose assets are not yet sufficient to protect them from financial hardship in the event of the death of the main earner. In this case, the life insurance pays a high sum insured immediately. At the end of the term of an endowment life insurance policy, there is more money - the contractual maturity payment including guaranteed interest and surplus sharing.

Self-employed people are particularly challenged
Self-employed persons usually have only few or no claims from the statutory pension insurance, so they are often completely dependent on their own provision. If, as a self-employed person, you do not want to forego your accustomed standard of living in old age, it is advisable to take out endowment life insurance in addition to a private pension and occupational disability cover.

And if you run a business jointly with your partner, you can make provision for the event of the partner's death with a linked life policy.

The amount of the premiums for endowment life insurance depends on the age and state of health of the applicant, the term of the contract and the agreed sum insured.

Optimise current contracts
Experts advise against the premature termination of a life insurance policy. However, it is advisable to optimise existing contracts. First of all, the payment method should be changed to annual transfer of the premium - this can amount to up to five percent of the annual premium.

Further costs can be saved by waiving the automatic dynamisation of your contract. Under no circumstances should you cancel a term life insurance policy, because it protects your family from financial hardship in the event of death.

If you want to participate in the yield opportunities of the stock markets, you should think about taking out a unit-linked endowment insurance policy.

Here, insurers invest the premium portion used for the sum insured to be paid out in one or more equity funds. The life insurer credits the value of the fund units to your contract when it expires.

Higher opportunities, higher risk
Unit-linked life insurance policies offer higher potential returns, but also the typical risks of loss associated with equity products. It is therefore difficult to estimate what capital will actually be available at the end of the contract term.

Unit-linked endowment policies are therefore recommended above all as a supplement to an existing old-age provision.

By signing the insurance application, you usually grant the life insurer the right to check the data you have provided on your state of health with your family doctor or other attending medical practitioners.

If you have numerous or severe pre-existing conditions, the insurer may demand a risk surcharge on the premium or even reject the application altogether. Reason: the higher risk of death for people with particularly severe pre-existing conditions should not be passed on to the community of all those insured with the company.

Health information is checked and evaluated
The applicant, the insurer and, if applicable, the life insurance intermediary each receive a copy of the insurance application. The health information is assessed by a medical professional of the insurance company.

If there are no abnormalities, the insurance policy is issued and sent to the applicant. With the delivery of the policy, the life insurance cover then legally comes into effect.

Endowment life insurance or a private pension contract - two options for financial old-age provision. But which is the right one? The answer, as so often: it depends on the individual case.

Different benefits
In the event of premature death, the life insurer pays the full sum insured immediately upon receipt of the first premium. Private pension insurance usually only pays back the premiums in the first few years after conclusion of the contract. Only if a guaranteed annuity period has been agreed, the annuity will continue to be paid to the surviving dependants even after the death of the insured.

Private pension: Alternative for single people
So if you want to protect your young family against the death risk of one of your parents, you are better off with a life insurance policy. But: the return on the paid-in capital for life insurance policies is currently around two and a half percent, while the interest rate for private pension policies is somewhat higher.

Those who do not have any dependents to provide for should in any case also take out a private supplementary pension.

If you have decided to take out endowment insurance, you will be faced with a large number of providers with a large number of products and tariffs.

You should not make a hasty decision in favour of a particular product based on your gut instinct.

Important: Expert advice
However, taking out a life insurance policy online without expert advice is not recommended - the subject is complex and there are many details to consider. Seek advice to analyse your personal risk situation and compare the abundance of tariffs on offer.