800,000+ customers
27 locations
92% recommend us

Closing costs with term life insurance: what about it?

Choosing life insurance is a smart move if you want to give your loved ones a financial boost after your death. Although you pay a monthly premium for this insurance during your lifetime, your family or relatives will receive an amount of money after your death. This amount can be used for mortgage payments and other expenses.

Term life insurance offers many benefits, but of course there are also costs involved. In addition to the monthly premium you pay as a policyholder , you must also take into account the so-called closing costs.

What do these fees in term life insurance involve and why do you pay them? Is it possible to take out term life insurance with no closing costs? These questions are answered clearly below

Why are there closing costs with term life insurance

In most cases, closing costs are charged when taking out term life insurance. These are, as the name suggests, administrative costs related to the entry into force of the insurance itself.

Keep in mind that as a policyholder, you only pay closing costs when you actually purchase the insurance.

Taking out death benefit insurance? Get in touch with us!

Can you also take out term life insurance with no closing costs?

Although closing costs for term life insurance are considered a standard expense in most cases, it is indeed possible to purchase insurance without (excessive) fees.

Of course, finding a no-cost term life insurance policy is no guarantee that you will be cheaper off. After all, if you do, there may still be a big difference between the monthly premiums you pay for your new term life insurance policy. The advantage you enjoy due to the absence of closing costs is therefore quickly negated.

The message? Compare as many insurers as possible so you know where to find the cheapest option. A final option is to simply not take out death risk insurance. After all, this is not mandatory in the Netherlands. On the other hand, of course, your next of kin will then receive no financial support after your death. Want to compare insurance? Then click here.