Term life insurance

Peace of mind for your relatives

ABN AMRO term life insurance

Choose the policy that best suits you
Competitive premium
Attractive non-smoker rate

Term life insurance

As if losing a loved one isn't already hard enough, there are sometimes also financial problems that need taking care of. This where the term life insurance comes in. If the insured party dies during the term of the insurance policy, the relatives will receive a one-off lump sum that can be used to pay off all or part of a mortgage or other debt, or send the kids to university.

More information and terms & conditions

Term life insurance explained

ABN AMRO's term life insurance lets you designate beneficiaries who will receive a one-off lump sum payment upon your death. In return for a monthly premium, you can decide how much the beneficiaries will receive, how long the policy term will be and who will receive the amount after the death of the insured party (you decide who is insured).

Who it is for

Term life insurance can be taken out for insured parties aged between 17 and 70. If you would like to take out this insurance, you will need an ABN AMRO current account.

It may be worth taking out insurance cover for a payout after your death if you:

own or are about to buy your own home;
take out a loan;
are your family’s provider;
already have term life insurance, but with an old (often higher) premium;
are getting married, moving in together with your partner or having a baby.

Existing term life insurance?
Premiums for term life insurances have dropped significantly in recent years, so if you already have a term life insurance, you may be able to lower your premium by taking out a new policy. Find out more now. If you apply for a new term life insurance, this may be subject to new terms and conditions and you may need to go through a new medical approval procedure, which could include a medical examination. This may result in you paying a higher premium (because your health has deteriorated, for instance) or because the insurer rejects your application. We therefore recommend that you only cancel your existing policy once your new application has been approved and you know that you will indeed be paying a lower premium.

Please note: you will need to pay ABN AMRO Bank a one-off handling fee of €175 when you take out a new term life insurance policy.

What is insured

Term life insurance provides a one-off lump sum payment to the beneficiaries listed on the policy in the event of the insured party’s death. You can choose the insured amount yourself, depending on what you would like to use the insurance for. You can also decide whether this amount decreases or stays the same over the policy term. We will pay out the insured amount in one lump sum. There are three types of term life insurances to choose from:

Decreasing insured amount - annuity
The one-off lump sum to be paid by the insurer upon the insured party’s death decreases annually by an annuity percentage selected by you
Decreasing insured amount - straight-line
The one-off lump sum to be paid by the insurer upon the insured party’s death decreases annually by a fixed amount that depends on the policy term
Level insured amount
The one-off lump sum to be paid by the insurer upon the insured party’s death remains the same for the entire policy term

You can insure up to a maximum of €5,000,000.

What is not insured

In certain cases, the beneficiaries will not receive a payout. Examples include when the insured party’s death is caused by one of the following:

attempted or actual suicide within 2 years of the start of the insurance policy;
an act by or assistance from a relative who would receive money under the insurance policy;
war.

If the insured party dies within 10 years of taking out the policy, the insurer will check all information submitted during the application. If any of this information is incorrect, for instance, where the insured party has not correctly listed any health problems, the insurer is entitled to refuse to pay out the insured amount.

For full details of payouts under the insurance policy, please see pages 2 and 3 of the Term life insurance terms and conditions.

Costs

Premium
Your premium depends on factors such as the following:

the amount you insure;
the type of insurance;
the term of the policy;
the age of the insured party or parties;
whether or not the insured party or parties smoke.

Discounts
If the insured party has not smoked during the previous 24 months, you will be eligible for the lower non-smoker rate.

Tax
In order to avoid inheritance tax on the term life insurance payout, you can split the premium. This is known as ‘reciprocal premium payment’ or ‘cross-premium payment’. Find out all you need to know about Term life insurance and tax (in Dutch).

Handling fee
You will need to pay ABN AMRO Bank a one-off handling fee of €175 when you take out a policy.

Increasing the insured amount

You are entitled to increase the insured amount every year, up to a maximum of €5,000,000. The insurer may ask the insured party for a new health certificate in such cases. The ‘option right’ is available only for policies with a level insured amount and it lets you increase the insured amount without having to answer any more questions from the insurer about the health of the insured parties. You can increase the insured amount by up to 15% of the insured amount each time. The option right will cease to be available if you do not use it for 5 consecutive years or if the insured party is older than 59.

When the insurer will pay out

The insurer will only pay the beneficiaries listed on the policy if the insured party dies before the insurance policy’s end date. If there are two insured parties, the insured amount will only be paid out once. The insurance policy will end once an insured party has died.

Medical approval

Health certificate
If you want to take out term life insurance, the insurer will want to assess the insured party’s health. You may be the insured party, but someone else could also be the insured party. The insured party therefore needs to complete a health certificate. Read more about it here: www.verzekeraars.nl/gezondheidsverklaring (in Dutch).

Medical adviser
The insurer’s medical adviser will use the health certificate to assess the risk of the insured person dying during the policy term. The insured party may sometimes need to give further information by completing an additional questionnaire. If necessary, the medical adviser will ask a specialist or GP for further information, but can only do so with the insured party’s permission.

The Medical advice step-by-step plan (in Dutch) explains the medical approval process in more detail.

Medical approval can take between a few days and a few weeks, depending on the type of information the insurer needs from the insured party. For instance, if a medical examination or additional information from a doctor or specialist is needed, the process may take longer.

Medical examination
The insurer can request a medical examination in the following two cases:

if the health certificate is insufficient for assessment of the insured party’s health;
if the insured amount is €500,000 or more.

The insurer will pay for the medical examination; you will not have to pay anything.

The health certificate and/or medical examination and your premium
You will need to make various choices when you take out term life insurance and the insurer will initially quote you a premium based on those choices. However, this premium does not factor in the health of the insured party or parties.

Once the health certificate and/or medical examination have been assessed, there are 3 possible results:

The insurer will accept your application right away and the premium will stay the same as the premium you were originally quoted.
The insurer will accept your application, but the premium will be higher. You will be informed of this as soon as possible. You can then decide whether or not you would like to take out the insurance for the higher premium. The insured party will receive a letter explaining why the premium has been increased.
The insurer will not accept your application. You will be informed of this as soon as possible. The insured party will receive a letter explaining why the application has been rejected.

To find out more about the medical approval process, please visit www.verzekeraars.nl/gezondheidsverklaring (in Dutch) or read the following brochures, which explain the rules the insurer follows.

If you have to have a medical examination due to your health certificate (in Dutch)

If you have to have a medical examination due to the amount that you want to insure (in Dutch)

Brochure on insurance and heredity (in Dutch)

Sample health certificate (in Dutch)

Explanatory notes to the health certificate (in Dutch)

In some situations, the insurer will ask for details of your financial situation, as well as the health certificate. The insurer will assess whether it is necessary to do so after receiving your application.

Complaints
If you are not satisfied with the approval process, you can submit a complaint. If you are not satisfied with how your complaint has been processed, you can write to the independent Dutch complaints tribunal for financial services Klachteninstituut Financiële Dienstverlening (KiFiD). Their address is Postbus 93257, 2509 AG The Hague. You can also take your complaint to court.

When the policy will start

After receiving your application for term life insurance, the insurer will assess it and decide whether to approve you for the insurance. This can take a few days or a few weeks, depending on the type of information the insurer assesses in each individual situation. For instance, if a medical examination is required or if the insurer needs additional information from a doctor or medical specialist, the process may take longer.

However, you have provisional cover in the meantime, which consists of two parts:

limited provisional cover: this only covers death resulting from an accident suffered by the insured party. Limited provisional cover starts right away when the insurer receives your application.
full provisional cover for the risk of an insured party dying: the insured party’s death is covered, even if the insured party did not have an accident. The full provisional cover starts when the insurer approves your application, but the policy will take effect on a later date.

The provisional cover applies for up to a maximum of 3 months, even if the insurance policy has not yet taken effect after this period. If an insured party dies during the application period, the beneficiaries listed on the policy will receive the insured amount you applied for, up to a maximum of €500,000.

Cancelling your policy

You can cancel your policy quickly and easily online.

If the insurance policy has been pledged, this means that you have given the policy to another party (the pledge holder) as security. The pledge holder is usually a financial institution. In this case, you can only cancel the insurance with the pledge holder’s express permission.

Please note: if you cancel the policy early, the beneficiary will not receive a payout, as the policy does not have a surrender value.

What we do with your data

Read the ABN AMRO Verzekeringen’s privacy statement to find out what we do with your data.

Terms and conditions

Term life insurance terms and conditions

Take a look at the old versions of the terms and conditions (in Dutch)

More information about our services is available in the Financial services document for covering risks..

Term life insurance is an ABN AMRO Verzekeringen insurance policy. ABN AMRO Bank sells this insurance on behalf of ABN AMRO Verzekeringen. ABN AMRO Bank owns 49% of the shares in ABN AMRO Verzekeringen.

Insurance card

If you would like to read the most relevant cover information, take a look at the insurance card. The insurance card has been compiled in line with European guidelines and provides an easy overview to help you compare policies.

Insurance card for ABN AMRO term life insurance