Note

Not to be confused with personal loan cover

Cover

• All products / durations possible
• Indexation possible

Purpose

• Compensates for reduced family income/rising costs
• Ensure living standards
• Saving/investment element

Beneficiary

Family / dependents

Insured

• Anyone
• Special consideration for non-earners

Evidence

Depending on sum assured: 

• Application
• Financial questionnaire: Personal cover
• Proof of income
  • Employed: 
    • Income tax return
    • Salary slip
    • Confirmation by company
  • Self-employed
    • Financial statement confirmed by an independent third-party incl. share

Income

Usually a 3-year average should be used. Be careful with trends, high deviations, and one-off payments. 

• Employed: 
  • Earned gross income
  • Regular allowances, bonuses, commissions, etc.
• Self-employed: 
  • Net profit before tax * share percentage

Calculation

Income * multiple = max. possible sum insured

Please note: There may be limitations for this calculation (e.g. for high earners or local limits).