Starting a family comes with a lot of responsibility. To protect your loved ones, you’ll need to purchase several types of insurance.
Term life insurance offers security for a low cost
Term life insurance provides financial protection for the family in the event of death. The young couple agrees on a death benefit amount with the insurance company. The premium amount depends on:
- the amount of the insurance coverage
- the duration and
- the policyholder's age at the time of enrollment.
According to experts, it is recommended that the sum insured be at least four to five times the insured person's annual income.
Term life insurance pays out only in the event of the policyholder’s death during the term of the policy. The policyholder pays significantly lower premiums for term life insurance than for whole life insurance. This makes it affordable for young families. Surpluses generated by the insurance company generally reduce the policyholder’s premiums.
From Term Life Insurance to Whole Life Insurance
If the young family’s financial situation improves over the long term, it may be worth considering converting their existing term life insurance policy into a whole life insurance policy. This option is available during the first ten years of the term life insurance policy’s term. A conversion does not require a new medical examination, which insurance companies typically require before issuing a life insurance policy.
Financial Security for the Family in the Event of Disability
Even young people are not immune to illnesses that can lead to disability. In such cases, the statutory pension is low due to the short duration of insurance coverage. It is generally not possible to cover one’s full living expenses with the pension alone. Therefore, disability insurance is recommended for young families.
Home and Personal Liability Insurance – Protection for Young Families
In Austria, home insurance typically includes personal liability coverage. It is therefore not necessary to purchase a separate personal liability policy. Home insurance with personal liability coverage provides protection for the contents of your home and covers the liability of all family members living in the household. Home insurance offers protection in the event of
- Fire,
- Burglary,
- Storm,
- Broken glass,
- Damage Caused by Tap Water
- and vandalism.
Children's Health Insurance paves the way for your children's future
Children have dreams. Whether it’s traveling the world or pursuing a college education—starting to save early with a children’s savings plan ensures that those dreams come true. You build up capital for your child while still having access to the money in case of an emergency. With this type of life insurance, your child has the option to continue the policy as a retirement plan.
You can also find more information on this topic on the Zurich Insurance website.
