Accidental death insurance

If you pass away, this could have large financial consequences for the bereaved. Of course, there is nothing you would like more than leaving them behind well taken care.

To cover the risk of demise, you can take out accidental death insurance. This will insure you for a certain amount, for a certain term. If you pass away within this term, the insurance will pay out the agreed sum. This can consequently be used to pay off the mortgage, but it can also be added to the capital. Your surviving relatives will be able to withdraw the desirable amount from this capital for a short or a longer term.

It is of importance to determine what income your partner will receive if you pass away. The income consists of own income, possibly complemented with a benefit from the general law for surviving relatives, a partner pension, income from capital or with payouts from other insurances. 

If you know what income your partner will receive, and when we have an insight into the needs of your partner, we will be able to ascertain what sum should be insured and for what term.                     

Do you have very young children? Then you should, when determining the amount of insured capital, think of possible extra costs for childcare if your partner keeps working, or of the fact that your partner may temporarily work less because of the care for the children. 

If you receive alimony and your ex-partner passes away, the alimony expires. To cover this loss of income, you could take out an accidental death insurance. 

Roughly sketched, there are three different kinds of accidental death insurance:

1. Fixed

The insured sum will not change during the term. Whether you pass away at the beginning of the term or at the end does not affect the insured sum.

2. Decreasing on an annuity basis

The insured sum decreases during the term. At the start of the term, the insured sum will decrease slowly, and at the end of the term, it will decrease faster. The decrease of the insured sum is dependent on the annuity percentage.

3. Linearly decreasing

The insured sum decreases with a fixed amount during the term. 

It often turns out that a good solution for covering the risk of accidental death is a combination of the different kinds of coverage and terms.