The term
life insurance mainly refers to an agreed sum of money paid at the time of
death to the survivors of the insured. A forecast of utmost importance that
many people choose not to take above all, ignorance. It is an investment of
life for the family.
Does everyone need life insurance?
The main
reason to buy life insurance is whether the death of a family member would
represent an economic loss; i.e. it is ideal for all people who are
breadwinners, and once died will leave the other members of the family. It is not necessary to hire this policy
for dependent children or wives economically dependent, as neither necessary
for grandparents.
The life
insurance policies are very popular in some countries, and too little in
others. In Latin American countries, for example, people there is an increased
demand for health insurance, including hospitalization, surgery and maternity.
By contrast, in the countries of North America and Europe it is very common to
hire a company to obtain life insurance policy. From there, an important
question arises.
What type of life insurance should I choose?
Usually the
life insurance policies provide a protective benefit for a certain period of
time defined by the death of the insured. Once he dies, survivors receive
compensation that will protect them after the death of the insured, from who
the family depended.
Whole life
policy. As the name implies, these policies can be used during the lifetime of
the insured permanently, without deadlines. The compensation is paid after the
death of the insured, regardless of when it occurs. That is, if the insured
dies at 30, 50 or 80 years, the policy covers him until his death.
Term life
policy. This policy can be hired for a certain period. If the insured is still
alive at the end of the coverage period of the policy, then you must renew it
or hire a new one. But it will cover during the time that originally was defined
at the sign of the contract.
Sometimes
you will find the option to restore part of the sum insured if the person has
survived a certain age, and for terminating the contract.
As for the
whole life insurance, there are two ways:
Whole life
insurance with annuity premiums, in which premiums are paid during the lifetime
of the insured, ensuring minimal coverage.
Whole life
insurance premiums temporary thus payments are made only for a few years or
until the death of the insured.
Universal
life insurance guarantee. Such policies offer benefits on the death of the
insured as well as the opportunity to build a cash value. This coverage is
different from those of the whole life insurance and term because within the
limits of the policy, the insured can vary the amount and frequency of
contributions.
Based on
the insurability of the person concerned, you can also be reduced or increased
death benefits. The cash value of the policy of universal life insurance
guarantee is determined by the amount of fees being paid, the interests
declared by the insurance company and the policy charges.
For an insured,
it is more convenient to have a universal life insurance guarantee for its
flexibility. Generally, they have less protection than a whole life policy, so
it is important to manage payments and any distribution of these to keep it
current.
Universal life insurance rates
In addition
to the known benefits of life insurance, this type of policy can provide
greater value growth than the last, with less risk. Overall one of the most
important options that includes, is a fixed interest rate.
With this
type of insurance, the value of the policy can be credited with higher than
lifelong interests. It can also be obtained variable protection policy.
Regardless
of the types of life insurance policy that exist in the market, it is very
important that before hiring one, the person responsible for taking the policy,
consider some factors.
On the one
hand, the duration for which you want to be insured; from there you decide if
you prefer a policy for a certain time or full. It is also important to define
the number of insured with the policy; some life insurance cover several family
members with the same policy; so are several people in the family who can assure
a better future for the rest of the family to leave for good.
Life insurance covers not only family
In addition
to protect the family in case of death, life insurance are also extended to
other beneficiaries such as shareholders, creditors, and others. Which is ideal
for those responsible family also hold business relationships and want to
protect their survivors future debts and other problems.
Funeral
costs, debts arising from medical bills before death, or even funds to provide
for retirement of another member of the family, also to cover college, among
many others, are the options for which having insurance life becomes very
advantageous. In case of problems, however, savings accounts to life insurance,
are unalienable.
Do not
expect to get sick to take out life insurance. On the contrary, if there is
good health, and is not responsible or householder, it is a smart move manage
resources that already exist to ensure that when you fail, family debts to be
covered, new spending and to make the plans or new ones arise.
In case you
are still having doubts on contracting a life insurance, here is a question for
you: What motivates you every day to go to work? Your children, your partner,
your dreams ... you work to give the best to whom you love. Give rest to our
parents in the autumn of their lives, study and education of our children, the
house will be home base, a journey that will promote family integration; It all
depends on us to generate the resources needed to realize those aspirations
being life insurance guarantor of our resources continue to flow even though we
no longer have the opportunity to generate anymore.