Mixed life policy: capital always insured and recovered, both in good and bad luck. Let’s find out what it is, the types, duration, and costs.

A mixed life policy represents both a non-life and risk coverage and a sort of pension fund. How? Let’s see what it is and know the different types, the duration, the liquidation methods, and above all how much-mixed a life insurance blog can cost.

The mixed life policy

In good times or bad…  No, I’m not talking about weddings, but mixed life policies. Their peculiarity lies in covering both the life case (certain annuity when the insured is alive at the expiry of the contract) and the death case  (certain annuity when the insured dies) at the same time. They are a smart choice because they satisfy both insurance and social security needs. The Ania, in its glossary, describes it as a:

“Life insurance contract that guarantees the payment of a lump sum or an annuity if the insured is alive at the predetermined maturity and, at the same time, the payment of a lump sum to the beneficiary in the event of the death of the insured during the of the contractual duration “

A mixed life policy ensures an annuity to those who subscribe to it when it is later in life and when the term set in the contract has elapsed. This is why it is a prudent investment in terms of pension, as well as a guarantee of extra serenity at a certain age.

But also the part concerning the case of death of the insured guarantees certainties. The interested parties are the family members of the policyholder if he or she were to be absent before the date indicated in the contract and, the loved ones of the insured, would receive an economic contribution.

Part of the premium paid is intended for the payment of life insurance, while the other part will cover any complementary guarantees, such as accidents, disability, and illness. However, it is only the capital accrued through the life policy that will be paid after the insurance contract.

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Types of mixed life policy

Insurance companies offer different types of mixed life policies. The differences concern the times and methods of delivery of the accrued capital.

Ordinary mixed life policy

This formula is the simplest: the company will pay the policyholder a capital (or an annuity) if he is still alive at the contractual maturity. In the event of premature death, the beneficiaries or heirs will receive the money.

The fixed-term mixed life policy

This type of contract provides that, in the event of the premature death of the insured, the insurance company will not have the benefit of collecting the remaining annual premiums.

Semitic life policies

With this policy, in the event of the death of the policyholder, the insurance company will deliver to the beneficiaries 50% of the capital at the time of death and the remaining 50% upon expiry of the contract.

How is a mixed life policy settled?

Once the expiry date of the insurance contract is reached, it will be time to reap the rewards. There are two possibilities: annuity or capital. Let’s see them in detail:

  • annuity: a sum is paid periodically to the insured throughout his life. The figure is calculated concerning the age of the insured and the premiums paid. If the policyholder is not alive at maturity, the life annuity will be paid to the beneficiaries specified in the contract;
  • capital: the entire accrued capital is delivered to the policyholder upon expiry of the policy, in a single payment. In this case, the policyholder can also choose whether to continue paying the premiums and postponing the settlement date. If the subscriber were to be absent before the deadline, the recipients indicated in the contract would always receive the capital.

I remind you that you can change the beneficiaries at any time, even if the contract is already valid.

The duration of a mixed life policy

Choosing the duration of a mixed type policy is very important and there are various possibilities on the market. Nowadays the solution with an annual term is very popular, but it is possible to subscribe to insurance contracts (always of a mixed type) with terms of five, ten, or 15 years. Some companies also offer the so-called mixed life insurance policy, the term of which can reach 25 years.

How much does mixed life insurance cost?

We have seen that the coverage concerns two extreme cases: the life and death of the policyholder. In both of these cases, the insurance pays the capital to the insured in the first case, to his family members in the second.

It can be imagined that the cost of a life insurance policy with these characteristics is high, precisely because the capital is always compensated and recovered. In reality, it is much cheaper to choose a mixed type contract than to activate two different insurances for each case (life and death).

Speaking of figures, it is clear that many variables contribute to determining them: the amount of capital, age of the insured, place of residence, work performed, smoking habit or not, etc. But, indicatively, the cost can be around between 80 euros and 200 euros per month.