Why should you take out life insurance?
Surely, at some point in your life you have considered hiring life insurance with questions such as: does it compensate for this expense or is it not necessary? In some personal situations something very useful and even essential is done , such as when you have children or have a mortgage. What is important to keep in mind is that this insurance protects you and yours in case you suffer from disability, illness or death . In addition, we give you other reasons why people usually hire it below:
Maintain the family economy in case of any unforeseen situation
This is usually the main reason for hiring this insurance because, in case you miss or have to stop working due to illness or disability, life insurance helps your family Maintain your economy and can meet all expenses.
Protect the mortgage
It is very common that banks offer better conditions on the mortgage or put it as a condition when hiring it. Above all, it is very useful to hire her to protect your family from this burden in the event that you are missing and not yet fully paid.
Guarantee the studies of your children
If training and future of your children is important for you, it is important that you know that in some life insurances they contemplate this factor. Therefore, if you have this clause specified in the policy, you will ensure that your children can continue their studies even if you miss or find it impossible to work due to illness or disability.
What does life insurance protect from?
The protection of life insurance depends on the modality we choose. It is crucial that we ponder the main objective we have in mind when hiring it. That is why we comment on the three main types of modalities that exist:
- Life insurance risk: This type of policy protects your family in the event of your death, so the family receives the total insured capital. There are two types: whole life (they cover until the insured’s death, when the established amount is charged) and temporary life (they cover the death of the insurance holder if it occurs within a specific period such as if you are paying a debt).
- Life insurance savings: Also called “life insurance”. They consist of insurance that guarantees the holder the payment of the capital when the policy expires.
- Mixed life insurance: It is a mixture of the previous two. The holder chooses the expiration date when he hires it. In conclusion: the capital can be collected in case of death or at the time it has been established.
While it is true that the main objective of life insurance is usually to cover your family financially in case of death, there are certain additional coverages with which it can be completed. The two main ones are the following:
- In case of disability: It is one of the most common. It serves so that, in case you cannot exercise your professional activity, it will give you an income during the period that the coverage lasts.
- In case of suffering a serious illness: It is a possibility in which the insured can request an advance of his capital in case of falling seriously ill (for a cancer, heart disease or another illness for which he is unable to work).
We understand that hiring life insurance can be a very complex action, but it is also true that it can be a lifesaver for your family in case you suffer a problem. Therefore, we encourage you to reflect on it, assess the advantages and inform yourself which of them could be more useful in your specific case. Because we believe protecting your family is very important.