Life insurance

What does life insurance cover? Life insurance provides lump-sum compensation if the insured person dies due to an illness or injury. The life insurance benefit will be paid to the beneficiary you have chosen. The right amount of life insurance covers at least your share of any loans, your annual gross income and EUR 20,000 for each dependant child. Any existing life insurance cover and wealth you may have will reduce the amount of new life insurance you need.

Take account of the following when determining how much life insurance you need:

• family’s loans
• parents’ annual gross income
• number of children     
• existing life insurance cover
• amount of wealth    
   

If your situation changes, you can adjust the amount of life insurance cover any time during the policy’s validity. Any changes you make will affect the price of the insurance.

The minimum age for taking out life insurance is two and the maximum age is 65. The minimum age for joint cover is 15 and the maximum age 65. Single-person insurance cover ends once the insured person has died or at the end of the insurance period when they turn 70. Joint cover ends if either of the insured persons dies or turns 70, after which the insurance continues as single-person cover.

Life insurance payouts are subject to either inheritance tax or capital gains tax, depending on whether or not the beneficiary is a next of kin.

Read more about taxation of life insurance payouts >

Life insurance is issued on the basis of a health declaration. When applying for life insurance, you must fill out a health declaration form asking for basic details about your health. You can easily fill out the health declaration online while applying for life insurance. Please note that the insurance policy will not enter into force until you have filled out the health declaration. For joint cover, both insured persons need to fill out health declarations.

Life insurance can be granted even if the insured is not in a perfect state of health; the granting decision is always based on the health declaration.

It is important that you do not terminate any existing life insurance policies until you have received a decision that a new policy has been granted.

When applying for life insurance, you can designate a beneficiary to whom the benefit will be paid in the event of your death. You can make changes to the beneficiary clause of your life insurance policy at any time by informing the insurance company in writing.

The easiest way to add or change a beneficiary clause is through the My policies section of the op.fi service. Alternatively, you can add a beneficiary clause by filling in the Beneficiary clause form.

It’s good to check the amount of life insurance compensation if your life situation has changed, for example, with the purchase of a new home and a bigger loan, or when a new child is born into the family. Calculate the amount of compensation so that it covers your share of the loans, your annual gross income, and at least EUR 20,000 per child in your care.

You can purchase additional cover by buying a new life insurance to supplement the old one with the desired amount of compensation. In this case, the amount of life insurance cover is the sum of the life insurance cover provided by the old and the new life insurance policies.

You must also submit a new health declaration in order to apply for additional cover.

Life insurance pays compensation to the beneficiary if the insured dies during the validity of the insurance. Here you can find the instructions and forms for applying for life insurance compensation.