When comparing life insurance policies and before purchasing, it may also be helpful to listen to experiences from people with different life situations. Hearing the experiences of others can help you decide which insurance product is the best option in your situation.
Whichever life insurance policy for personal customers you choose, you get an automatic 45% increase in the sum insured of your life insurance if you are an OP cooperative bank owner-customer or Pohjola Insurance prime customer.
Single and joint cover
When comparing life insurance products, think about your current life situation. In single cover, the life insurance covers one person. In turn, joint cover is a life insurance for two insured persons. For example, joint cover is intended for couples who handle the household’s finances jointly and often has a lower premium than single-person policies.
In joint cover as in single-person life insurance, each insured person chooses their own beneficiary. Both types of insurance require filling out a health declaration. You can also choose the sum to be paid out to the beneficiary if you die during the policy’s validity.
Free NewLife life insurance for parents of newborns
The birth of a baby is a major life event, and while parents often take out insurance for the newborn, it's advisable to also remember to secure the family’s livelihood. NewLife is a life insurance policy for parents of children under the age of 1, and can be taken out immediately after birth until the child is 1 year old.
The first year of NewLife insurance is always free of charge to both parents. Unlike in single and joint cover where you choose the amount of benefit, in NewLife insurance, the benefit is always set at €20,000. NewLife insurance also differs from other life insurance policies in that it does not require a health declaration to be completed. You can buy the insurance even if your state of health would usually disqualify you from life insurance.
Life insurance for entrepreneurs
If you are self-employed, you can take out a life insurance policy designed specifically for entrepreneurs. In this case, you can deduct the insurance premiums from your company’s taxes. It is also useful to consider the difference between life insurance for personal customers and self-employed persons when comparing the prices of insurance. Life insurance for entrepreneurs can secure your loved ones’ finances or ensure the continuity of your business. If your company is less than one year old, you get life insurance with a benefit of 30,000 euros at half price for the first two years.
Life insurance or loan protection insurance?
Loan protection insurance is tied to a specific loan. It provides cover against incapacity for work, unemployment, accidental permanent disability and death. The monthly payments of loan protection insurance help pay instalments on the loan, and the lump-sum compensation paid out in the event of accidental permanent disability or death can be used to pay off the remaining loan or part of it.
Loan protection insurance can thus be an invaluable help to your loved ones in the event of death. The death benefit paid from loan protection insurance is tax-exempt to the extent that it is used to pay off the remaining loan principal. A life insurance policy that is not tied to a loan secures your loved ones’ livelihood and finances if you pass away due to an illness or accident.
The beneficiaries named for your life insurance can use the benefit in any way they see fit such as taking care of daily expenses or paying inheritance taxes. Life insurance benefits paid to next of kin from a life insurance policy are subject to inheritance tax. For beneficiaries other than next of kin, the benefit is taxed as capital income.