Insurers are seeing fewer and fewer term life insurance policies

Fewer and fewer people are taking out a term life insurance policy (OVR) to finance their home. Many tenants and self-employed entrepreneurs, in particular, do not have such insurance. This was reported by the Dutch Association of Insurers, which had research conducted among more than 17,000 people. A term life insurance policy ensures that surviving relatives can receive a certain amount of money after a person's death.

According to the research, 15 percent of renters say they have a term life insurance policy, compared to 38 percent of homeowners. One in four self-employed people say they have taken out such insurance. Many people do not know that a term life insurance policy offers a financial safety net to surviving relatives, the Dutch Association of Insurers explains.

General Manager Richard Weurding says he is concerned about the vulnerability of a growing number of Dutch people. "A financial safety net is of great importance to surviving relatives. Whether you live in a house you own or rent, are an employee or a self-employed person, the housing costs, costs for study, childcare, and living expenses simply continue."

According to Weurding, homeowners more often have a term life insurance policy than renters because the insurance is usually discussed with a professional advisor when buying a house. "Tenants with a partner or children have to take the initiative themselves," he adds. Self-employed people who were surveyed say more often than employees that they do not have a term life insurance policy because they have a sufficient financial buffer themselves.

Of all the people who participated in the study, seven out of ten indicated that they or their partner do not have term life insurance. Many people over 65, in particular, do not have this insurance. About 85 percent of the respondents in this group said they had not taken out such insurance. According to the study, people with lower education and lower incomes also more often do not have this insurance.