Life insurance: what are and what are its benefits

Even if most of the time we think that it has no way of happening to us, the reality is that each of us is very vulnerable in this slalom of life. And the care for our future and loved ones should include this important component, i.e. life insurance.

For many aspects of our life we ​​have a plan B, we are able to prevent a lot, to prepare some solutions and guarantee the plans we do, all in the short term. But your future and loved ones deserve long -term safety, so it is good to consider life insurance.

What is life insurance?

Your future means taking care of your safety, your family and the result of the plans you make together. And since many aspects cannot be foreseen, life insurance is the answer for the financial or beloved person. For an exercise of imagination, if you have a fatal accident tomorrow, are you sure that it manages all the financial challenges that remain (bank installments, maintenance costs, etc.)?

Starting from its simple form, which has the coverage of death, due to any cause, life insurance has become a complex product with the possibility of opt for extra clauses. In addition, depending on your interest, the risks that are exposed to the financial plans or financial plans that you are most of 30 years old, you can opt for a more personalized version.

Life insurance ends for periods between 5 and 30 years (or more), but without overcoming the age of 65 of the insured person and is divided into three categories:

• Life insurance with a protective effect that automatically includes the coverage of financial losses produced by an unfortunate event (disease, disability, death). If the insured person leaves his life, his family will receive a predetermined amount in the insurance policy (e.g. in an insurance of 10 years with the first quarterly of 38 euros, the insured amount received by the family is 30,000 euros). If, at the end of the contract, the death of death has not occurred, the first paid has no reimbursement value (the money is not returned).
• Life insurance with salvific effect (mixed life insurance) includes, in addition to the protection part, the possibility of saving. For example, at the age of the majority, it is possible to provide children with access to higher education by covering study costs. Or, at the end of the contractual periods, it is also possible to receive the insured amount saved by the insurance premium.
• Life insurance with an investment effect includes, in addition to the protection party, the possibility of investing in the purchase of funds, various transfer and redirect operations in the available investment programs, the increase in the investment account or protection from inflation. And at the end of the insurance contract, the beneficiary can receive the insured amount and the value of the investment account.

These three categories of life insurance have been developed and divided into variations that correspond to the lifestyles that we now have (mixed, studies, dowries, etc.). Therefore, it is ideal to speak with an insurance consultant to conclude an insurance that adapts to you.

What are the benefits of life insurance

Our main objective in life is to provide the family with security and protection and life insurance this can be possible even when we are no longer with them. Family security is the main purpose and the effect of life insurance, because (depending on the clauses that includes) it takes control of funeral expenses, offers the family the insured amount and can also close the active loans of the insured. So that the family does not meet financial weights.

Access to future opportunities by children represents the peace of tomorrow. Who knows how much will you allow you to invest in the education of your children or what will be the financial situation of the family so that they can give them access to higher education? With life insurance you can focus more in the current life of children and give them what they want or need now, knowing that their education is already ensured.

The possibility of saving and investing already simplifies old age. While you enjoy the time spent with your family, you have a few years to choose what you will do with the money saved when you don’t work: a small business, a long journey through the world, the car you dreamed of in your youth, etc.

In addition to all those listed above, life insurance educates preventive and economic behavior. Therefore, you will learn to pay attention and care that your health is worth, as well as the monthly income of the family. The priority of needs in life is a part integrated in the maturation process, but also of your family. Remember that you are the main model of your children and you certainly want me to provide family security.