Lífheilar

Lífheilar is an Icelandic term that translates to "life insurance" in English. It refers to a contract between an insurance policyholder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. The primary purpose of lífheilar is to provide financial security to dependents, such as a spouse or children, who may suffer financial hardship due to the loss of the insured's income.

There are several types of lífheilar policies available in Iceland, broadly categorized into term life insurance and whole life insurance. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. If the insured person dies within this term, the death benefit is paid out. Whole life insurance, on the other hand, provides coverage for the insured's entire life, as long as premiums are paid. These policies often include a cash value component that grows over time and can be borrowed against or withdrawn.

The cost of lífheilar premiums in Iceland is determined by various factors, including the age, health, lifestyle, and coverage amount of the insured individual. Insurers typically conduct medical examinations or ask detailed health questions to assess risk. It is a common financial planning tool used by individuals and families to protect against unforeseen events and ensure financial stability for loved ones.