Income loss can leave family members facing the greatest financial pressure at the worst possible moment. Life insurance is the fundamental financial protection built against this scenario. A single policy can sustain a family's financial security for years.
What is life insurance?
Life insurance pays a benefit to your designated beneficiaries if you die, or — in some types — if other defined risks occur (accident, illness, permanent disability). Its core purpose is to protect the people who depend on your income against the financial consequences of losing you.
What is the difference between term life and whole life insurance?
Term life insurance (risk hayat): provides cover for a fixed term. If you die within the term, the benefit is paid; if you survive, there is no payment and premiums are not refunded. It is the purest protection product and has lower premiums.
Whole life / endowment insurance (birikim hayat): combines a death benefit with an investment or savings component. The accumulated value is paid on maturity. Premiums are higher but the policy also carries a savings function.
The two products serve different needs. For pure protection, a term policy is preferred; for both protection and savings, a combined product is chosen.
What is corporate (group) life insurance?
Corporate life insurance is arranged by an employer for all employees under a single group policy:
- The employee's family receives a lump-sum benefit on death
- Accidental disability and critical illness covers can be added
- Group premiums are typically 20–40% lower than equivalent individual policies
- The employer can deduct premium payments as a business expense
Group life is one of the most effective employee benefits for increasing retention — particularly essential for critical roles.
What determines a life insurance premium?
- Age: the younger you start, the lower the premium
- Health status: chronic conditions and smoking increase the premium
- Occupation: high-risk jobs (mining, construction, aviation) carry higher premiums
- Sum insured: the premium is proportional to the benefit amount chosen
- Policy term: longer-term policies are generally more cost-effective on an annual basis
How and when is the life insurance benefit paid?
On the policyholder's death, beneficiaries apply to the insurer with the policy document, death certificate and identity documents. After the review is completed — usually within 30 days — the benefit is paid directly to the named beneficiaries.
In Turkey, life insurance benefits are exempt from income tax and are not included in the estate — they go directly to the designated beneficiary.
What is the difference between life insurance and BES?
Life insurance is a protection product: it provides financial security against the risk of death or disability. BES (private pension) is a savings and retirement product: it builds a retirement fund for the policyholder while alive. They are not alternatives — they are complementary. View our individual and corporate life insurance options.
Life insurance is not there today — it is there for your family on your worst day. That is why we talk about coverage, not cost.