Term life insurance pays out a one-off amount to the beneficiaries designated by you for this insurance after your death. You determine the exact amount, the term of the insurance and who is to receive the amount after the policyholder’s death (you decide whom to insure). Premiums are paid on a monthly basis.
You can no longer take out term life insurance through ABN AMRO. But we do have a partnership with Nationale-Nederlanden (in Dutch).
Insuring a death benefit is interesting if you:
- Are or become a homeowner
- Take out a loan
- Are the breadwinner and are responsible for the care for your family members
- Already have term life insurance, but with an outdated (usually higher) premium
- Are getting married, moving in together or having children
If you already have term life insurance
Term life insurance premiums have fallen sharply in recent years. There is a chance that the premiums of new term life insurance will be lower than what you are currently paying. If you apply for new term life insurance, you will face new terms and conditions and new medical acceptance. Premiums may in fact be higher as a result. We therefore recommend terminating your current policy only when your new application has been accepted and you are sure your premiums will actually go down.
New term life insurance
You can no longer take out term life insurance through ABN AMRO. Nor do we provide intermediary services for new term life insurance. But we do have a partnership with Nationale-Nederlanden. For more information you can contact Nationale-Nederlanden via + 31 88 66 30 000. Or check the website of Nationale-Nederlanden (in Dutch). There you can also take out term life insurance directly online.
Types of term life insurance
Decreasing insured amount based on annuity schedule
The insured amount decreases every year based on the annuity rate selected by you. The longer the insurance is in effect, the lower the benefit amount on death. This type of insurance is a good choice when you have a level-payment mortgage, as the right amount will be insured throughout the term. With most insurance companies, the period on which premiums are paid will be shorter than the term of the insurance. Please bear this in mind when comparing insurance companies.
Decreasing insured amount on a straight-line basis
The insured amount decreases every year by a fixed amount in line with the term of the insurance. In other words, the longer the insurance is in effect, the lower the benefit amount on death. This type of insurance is the best choice when you have a straight-line mortgage. With most insurance companies, the period on which premiums are paid will be shorter than the term of the insurance. Please bear this in mind when comparing insurance companies.
Level insured amount
The insured amount is the same throughout the term. This type of insurance is generally the optimum choice if you have unchanging debts, such as an interest-only mortgage. Or you may select it if you wish to provide for additional income after your death.