A life insurance policy is a contract based on the life of a person. It involves several parties:
- the insurer: who offers the policy and must pay out the value of the policy when it terminates or the insured person dies;
- the policyholder: the person who takes out the policy and pays the premium;
- the insured: the person on whose life the policy is based and on whose death the policy ends;
- the beneficiary: the person who receive the value of the policy when the insured dies or the policy ends.
The premium is paid by the policyholder. Depending on the choices offered by the insurance company, the premium may be paid in one of two ways:
- as a single premium at the start of the policy;
- as regular annual or monthly premiums, the frequency and amount of which are determined with the insurer when the policy is taken out.
When taking out the policy the policyholder fills in an “investor profile” questionnaire in order to determine the level of risk he is prepared to accept.
Depending on the result, the policyholder then has the choice between different funds in which the premium will be invested. These funds may be:
- guaranteed rate funds; or
- funds quoted on stock markets, the returns of which may go up as well as down.
The policyholder also chooses the beneficiary/ies of the policy, i.e. the person or persons to whom the value of the policy will be paid when the insured person dies.
Depending on the alternatives offered by the insurance company, the policyholder may, during the life of the policy:
- make additional payments on his policy;
- make surrenders, i.e. may withdraw part of the sum invested if he needs cash;
- change the funds if there is a change in his risk profile;
- change the beneficiary selected when the policy was taken out.
Life insurance policies are an extremely flexible products, which enable you:
- to pass on capital to your family and friends;
- to access to your assets, at any time, by making a surrender, if necessary;
- to build up a lump sum with which to fund your projects (housing, retirement, etc.);
- to make payments at any time;
- to diversify your investments.
Baloise Assurances offers you different solutions depending on your requirements:
- Pension Plan: your insurance savings and pension;
- Kid's Plan: life insurance for your child/ren;
- Life Plan: à la carte savings and provident life insurance;
- Switch Plan: your 100% sustainable life insurance policy