What are the pros and cons of a personal accident insurance with refund of contributions?

The pros and cons of a personal accident insurance with contributions restitution

The private insurance is a private supplementary insurance, which can increase the performance of statutory insurance. Statutory accident finally occurs only in the event of industrial accidents or occupational disease. Accidents in recreational or household use are not covered, however.

It is therefore necessary to conclude an additional private protection. Depending on the desired benefits of private insurance can be freely chosen. They range from payment of hospital benefit on cosmetic surgery up to the pension payment in the event of disability as a result of the accident. Disability payments can also be secured on the accident.

A private insurance can generally be completed in two different ways. This is partly as a pure risk insurance. She takes over in the insurance case, the costs incurred. Other services, however, not be paid.

In contrast, the insurance contribution is consistent with restitution. Anyone who chooses, at the end of the contract shall be refunded the contributions paid. This is often regardless of whether the insurer has paid during the term of service or not. Restitution refers only to the risk premia. Installment charges or premium taxes are not included. Thus, the accident is post back with an insurance guarantee on the one hand and the other, a savings scheme.

The contracts will be here both as a traditional interest-bearing contracts sold as well as unit-linked insurance. Although the latter offers greater returns, a guaranteed payout amount can be found here, but not usually. In the classic variant is known as an insured, however, already in the conclusion, which guaranteed amount is paid. Only the bonuses can not be predicted in detail.

The advantage of the insurance contribution with restitution is that the payments during the period are not lost. Since the insurance is usually completed by the age of retirement, the contract can also serve as a small additional pension.
The disadvantage is that the premiums for accident insurance with a private posting restitution slightly higher than for a classical risk insurance. Finally, in addition to the risk and the savings scheme must be operated.