Family

The importance of good insurance

There are dangers great and small lurking around every corner in our daily lives. Some setbacks can have major financial consequences. How can insurance protect you and your family? What basic principles do you absolutely need to know?

A to Z of insurance

There are little incidents and major setbacks lurking around every corner in daily life:

  • A house fire breaks out due to a moment of inattentiveness in the kitchen.
  • You bump into a car with your shopping trolley in a supermarket car park.
  • Your dog escapes from your garden and causes a serious traffic accident.
  • While renovating your home, the contractor causes damage to neighbouring homes.

Some setbacks in life can have significant financial consequences. A good insurance policy can alleviate the financial distress from the outset.

 

The basic principle of insurance is simple: by taking out insurance and paying a budgeted amount each year you can avoid having to pay an unforeseen cost that is impossible to estimate and which you might not be able to pay in the event of a setback.

Do you know the difference between life and non-life insurance?

There are many different insurance products. There are also various ways of categorising these products. One possible way is to separate them into life and non-life. What is the difference between the two?

 

 

Is it not strange that we often think to insure our house or car but not the one thing that many people care about the most: their family and their life?

Why a life insurance?

Taking out a life insurance policy may appeal to you in the following situations:

  • You want to save for the future because you suspect (and fear) that your state pension will not be enough to maintain your standard of living after you retire. Or you want to give your (grand)children extra financial support.
  • You want your surviving dependants to benefit from the best possible protection against the financial consequences of your death. With a life insurance policy you can arrange for a capital sum to be paid out to your surviving dependants if you (as the insured) die. Let us suppose you have children. The costs for these children will remain the same even if one parent dies. And you would not want your partner to be left with a financial headache if you died or your children to no longer be able to pursue their favourite hobby because there is no money anymore to pay for it?
  • You want some of your savings to deliver extra returns. You have a choice of two popular forms of investment here: branch 21 life insurance and branch 23 life insurance.
  • Or, as a self-employed person, you want to insure your earnings in case of an accident or illness so that you do not run the risk of having no income. In that case, your insurer will produce a proposal for you for a guaranteed income in exchange for payment of a modest monthly premium, which will give you peace of mind.

What is the difference between branch 21 and branch 23 insurance?

Most life insurance policies offered in Belgium today are branch 21 and branch 23 life insurance:

  • Branch 21 groups together all kinds of life insurance policies which provide you or your surviving dependants with guaranteed interest and pay out at least a predefined sum.
  • Branch 23 groups together all kinds of life insurance policies which are linked to one or more (internal) investment funds. So, with branch 23 you have no guarantee in principle that you will receive a predefined capital sum or return (though there are types that do protect your capital).

In other words, do you want to be on the safe side and protect your capital for yourself and/or your family? If so, then there is bound to be a life insurance policy with your name on it.


Want to know more?

Would you like to know more about the benefits of good insurance for yourself and your family? Check out our webpage for more information or make an appointment with your ING branch manager.