What insurance sum should I choose for the Life Insurance?
In principle, Life Insurance should ensure that your family can continue with a relatively unchanged standard of living. You should therefore consider your finances, your net worth, your home mortgage, other debt and large investments when you determine the insurance sum under the Life Insurance.
Why does the cost of my Life Insurance increase?
The cost of your Life Insurance increases with your age. There are several reasons for this, but the main reason is really quite simple: The older you become, the greater your risk of dying. The greater the risk that Life Insurance is to cover, the higher the price will typically be.
Some insurance companies choose a different solution, whereby everyone pays the same price for their Life Insurance, irrespective of age, as a kind of average price. But we believe that it is fairer for you – and for other customers – that you pay for the risk associated with your age.
So Life Insurance is cheaper while you are young, while the price is a little higher as you get older.
The cost of your Life Insurance thus increases continuously until you reach 49 years of age, after which the price will be the same. On the other hand, we reduce the insurance sum for your Life Insurance by 10% annually until you reach 75 years of age.
We do this so that the cost of your Life Insurance does not become too high. Many of our customers have started a family and already have older children when they reach the age of 50, giving a reduced need for extensive Life Insurance.
The need for the extra financial security of a higher insurance sum is usually greatest while the children are very young. As the children grow up, this need is reduced, and we therefore assess that a lower insurance sum is better than a higher price for Life Insurance.
Why has the price changed after I completed the health declaration?
When you order Life Insurance from us, you get a provisional price based on the information we hold about you. When you have completed a health declaration after your order, we will have more information on which to base your price, and the cost of your Life Insurance can therefore change.
Does my educational level affect the cost of my Life Insurance?
In addition to your age, your educational level also affects the cost of your Life Insurance. It does this because statistics show a link between length of education and the risk of dying.
The longer your education, the cheaper your Life Insurance will be. In this case, too, we think that it is fairer for you – and for the other customers – to pay for the risk that, according to the statistics, is linked to your level of education.
Why does the cost of my Life Insurance increase once a year?
Your Life Insurance sum and price are adjusted annually in step with the other increases in prices and salaries in society. This is called index-linked adjustment.
The adjustment of the Life Insurance price varies from year to year, and therefore we can only give you a fixed price for your Life Insurance for one year at a time.
To whom does the Life Insurance pay out compensation?
The Life Insurance pays the compensation to your next of kin. You should be aware of the special conditions concerning a cohabiting partner that must be fulfilled for this partner to receive compensation from the Life Insurance policy as the next of kin.
Choose a beneficiary for your Life Insurance
If you wish to choose to whom the compensation is to be paid, you must name a beneficiary in your Life Insurance policy.
You can change your Life Insurance beneficiary according to your situation, you can select several persons as beneficiaries, or you can choose an association, charitable organisation or similar.
Naming an irrevocable beneficiary means that any compulsory heirs cannot contest the beneficiaries named in the Life Insurance. An irrevocable beneficiary can only be changed if this is accepted by the beneficiary.
There may be situations where people who are not spouses need to protect each other using Life Insurance, as registered partners, cohabiting partners or business partners.
In such a case, you can draw up mutual Cross-Life Insurance.
When you wish to purchase Life Insurance, you must complete a health declaration.
Read more about the health declaration here: Health declaration (in Danish)