Life In­sur­ance

It is uncomfortable to think about what would happen if you were to pass away suddenly. However, it is important to consider it, especially if others rely on you or if you have financial obligations.

By getting life insurance, you can ensure the financial security of your loved ones in case something happens to you.

This also allows you to stop worrying about these things. You only have to give it some thought if your circumstances change in the future, at which point it might be necessary to review your insurance.

The sooner, the better. It is both simpler and cheaper to buy life insurance when you are young.

We recommend that everyone aged 18 and older purchase critical illness insurance, and you should get life insurance when you buy a home, with the associated debt, or have children.

The cost of the insurance varies. The amount of the benefits has a significant impact on the price—the higher the benefits you choose, the more you pay for the insurance. The benefit amount increases annually based on changes in the Consumer Price Index, which also affects the premium you pay for the insurance.

Various factors related to health and lifestyle can influence the cost, such as whether or not you smoke. Age also plays a role, with younger individuals paying lower premiums than older ones.

Young people can, for example, purchase life and critical illness insurance for about the same price as a monthly subscription to a streaming service.

You choose the benefit amount when you apply for the insurance. You should base this decision on your income, debt, and family circumstances and select an amount that suits your situation.

It is important to review these amounts regularly, especially when your circumstances change - if you have a child, get married or divorced or your financial status changes, for example.

The insurance also pays benefits if a child of the insured passes away before the age of 18. Benefits for children are 10% of the life insurance benefit amount but never exceed 2 million ISK per child.

If you pass away due to an accident or illness, the benefits are paid to the beneficiaries. You decide who the beneficiaries of your life insurance benefits are when you apply for the insurance.

There are several options to choose from in the application:

• No designated beneficiary

This means that if you have a spouse, they will receive all the benefits. Note that a spouse is someone you are legally married to, not someone in an unregistered cohabitation.

If you do not have a spouse, your child or children will be the beneficiaries.

If you have neither a spouse nor children, the benefits will be paid to your heirs according to the law.

• Legal heirs

If you choose this option, your spouse will receive one-third of the benefits, and your children will receive two-thirds. Note that a spouse is someone you are legally married to, not someone in an unregistered cohabitation.

• Named beneficiary

Here, you can select one or more specific beneficiaries. This option may be suitable for those in unregistered cohabitation.

You can always change the beneficiary designation after the life insurance policy takes effect. This may be necessary if there are changes in your family circumstances.

To change the beneficiary designation, contact us by sending an email to sjova@sjova.is or calling 440 2000.

Benefits in the event of a child’s death are paid to you, the policyholder, as long as the insurance is active.

Benefits are paid from life insurance regardless of whether the cause of death is an accident or illness. The benefits are paid out as a lump sum and are tax-free.

A death must be reported here. The notifier logs in with electronic identification and selects People/Death after completing the initial steps. If assistance or information is needed to report a death, please contact us via live chat, phone at 440 2000, email at sjova@sjova.is, or visit one of our branches.

Once a death notification has been received, we will need to collect documents to process the benefits. This document collection typically takes about 4–6 weeks.

If you lose more than half of your working capacity, you can apply to have the premium reduced or waived for up to 5 years without affecting the insurance coverage.

This is called premium waiver and is included in our life insurance policy. To apply for a premium waiver, report it here under People – Illness or Accident.