The passage of time makes us older, and the convenience of life insurance is something that must be considered if you want to ensure the future of your partner and offspring. It is one of the most interesting financial products, and banking and insurance entities have several interesting formulas. We enter the world of life insurance.
What is a insurance of life?
It is known as life insurance to a policy that is signed with an insurer or financial institution. This is to ensure the finances of our family in case of death or serious accident. In this case, thanks to the life insurance, an economic amount agreed in the contract is paid , and that goes to those who the insured has designated.
With this type of insurance, we guarantee that our loved ones will not be left unprotected in the event of the owner's death. Likewise, they cover accidents that cause a permanent disability that prevents you from working. Imagine the case of a family with young children. If the insured dies or is disabled, there would be a loss in income. The convenience of life insurance is that the needs are covered .
The insured capital is variable, and depends on the needs we want to cover. They are normally offered with figures ranging from 12,000 to 100,000 euros. As this capital increases, the amount to be paid will be higher. And choosing how much we want to insure has to be determined by various factors.
Our life insurance must cover, as a minimum, those debts that we have with financial institutions. In the event of death, this capital will serve to cancel those loans and not let our descendants pay those debts for us.
Age of descendants
In case of having people in our charge who are minors. We will try to contract an insurance broad enough to allow them to reach adult life without restrictions.
If the insured's salary is the only one in the family, it is advisable to make an effort and opt for a higher capital
Some Life Insurance Considerations
- Can I have multiple life insurance? Of course, they are cumulative and in case of need, the capital of all insurance passes to the beneficiaries.
- Do you ask me for a medical check-up? Some insurers request it before they are hired. The goal is to rule out serious medical problems.
- Can I deduct it from the income statement? Yes, only in the case that life insurance is linked to a savings plan.
- I like risk, will it cover me? They generally do not cover the contingencies produced in risky activities, such as car racing, climbing or parachuting. For these cases there is another type of insurance.
Life insurance, a smart choice
The convenience of insurance is always high. As it is the best way to ensure the economic stability of our relatives in the event of death. No one is safe from an unforeseen contingency, such as a traffic accident or a sudden illness. It is when these problems occur that life insurance comes out and its value is appreciated.