A person’s financial life goes through ups and downs, including unforeseen events such as illnesses and accidents. As far as anticipating these facts, it is indispensable and crucial for the financial planning of the future. Having life insurance is a good way to protect yourself against these events because it offers peace of mind and certainty that there will be money available even in a disadvantageous situation.
What is life insurance?
It is an instrument for the protection of the financial stability of the person, which is delivered by an accredited management company, in this case, a life insurance company such as www.insurance.us.
Why take out life insurance?
Life insurance was designed to meet the following objectives, in case of death or disability of the insured:
- Economically cover the insured of the risk of personal and/or health accidents.
- Protect loved ones and family heritage.
- Pay credits in case the insured has incurred a financial debt.
- Pay partners or creditors of the insured (in the case of a commercial company, for example).
- Guarantee an income for the insured or their beneficiaries
Who can take out life insurance?
Any person over 18 years old can take out insurance, either individually or collectively (in the latter case, he is hired by a company for the benefit of his collaborators). Life insurance is voluntary except for the type of Insurance associated with mortgage loans, which is mandatory.
Everyone can be a beneficiary as indicated by the insured when hiring the policy. There is no need for any family or spousal relationship.
What types of life insurance are there?
- Whole Life: its coverage extends until the insured’s death, that is, the payment of capital is guaranteed immediately after the insured dies, regardless of the date when his death occurred, whether due to illness or accident. The beneficiary or beneficiaries enrolled in the policy will receive compensation as soon as the death is credited.
- Temporary Life: Like the Whole Life type, capital is payable to beneficiaries immediately after the insured dies of natural causes, suffers a fatal accident or accidental disability.
However, the incident must occur during a certain period of time (before the end of the agreed term as insurance duration). If the insured lives for when this stipulated period expires, the insurance is canceled.
- Family Protection: protects all members of the family group, whether due to death or other risks such as disability or dismemberment of the insured if it is contained in the policy. Like Temporary Life, its duration is for a defined period.
- Disability: covers the disability of the insured because their physical or intellectual capacity is weakened, due to illness, or accident. The payment of compensation corresponds to the payment of a capital or an income, as provided in the policy. Its duration is for a defined period.
- Assistance: covers services, assistance or expenses generated by the death of the policyholder. Its duration is for a defined period.
What does life policy include?
Diseases and types of accidents insured, as well as their intensity and duration.
The beneficiaries (loved ones, partners, creditors, etc.) indicated by the insured will be the persons assigned to receive the benefits of the policy. In the absence of designated beneficiaries, the legal heirs are those who receive the capital.
Reaching a certain age, financing the future of the family or protecting oneself in case of illness or accident are some of the reasons why a person takes out life insurance. More than the cost, the decision is based mainly on the stage of life of the person and the individual circumstances surrounding it.