Life insurance is important because it is basically a policy that protects those we love the most in the event of a possible accident that causes the death of the insured or generates a situation of disability that prevents him from continuing his professional activity.
This insurance offers the insured the guarantee that, in case of death, the insured capital will be compensated with a certain amount of money to his direct relatives or to the persons he has chosen as beneficiaries of the policy.
Buying life insurance is not mandatory, even if it is a good decision. This policy can be a lifesaver for many families who are caught up in a dramatic event. Especially when the family has a mortgage debt, there are debts to pay or children grow up and will need the financial support provided by the death insurance.
And having a policy that guarantees enough insured capital gives us peace of mind.
Types of life insurance
Insurers offer different types of insurance to protect our property. It depends on what we need to ensure. The types of insurance are:
1. Life insurance or personal insurance.
It is different from other insurance, in the sense that, here, the problem of insurance is the life of a human being. The insurer will pay the fixed amount of insurance at the time of death or at the end of the given period.
2. Insurance of goods.
Within the insurance of the goods, the goods of the person/persons are insured against a certain specific risk. The risk can be the risk of fire or navy, theft of property, or damage to property in an accident.
3. Fire insurance.
Fire insurance covers this risk. A lack of fire insurance will lead to a rise in fire waste for society as well as individuals.
4. Liability insurance
General insurance also includes civil liability insurance for which the insured person must pay material damages or compensate the loss of the person; Injury or death.
5. Insurance guarantee
Warranty insurance covers losses resulting from dishonesty, disappearance, and disloyalty of employees or third parties. The party must be a party to the contract.
6. Social insurance
Social security offers protection to the weakest sectors of society who cannot afford a premium for adequate insurance.
Pension plans, disability benefits, unemployment benefits, health insurance, and industrial insurance are the various forms of social security.
Reasons to call for life insurance
Pay off debts
An insurance policy can pay off any debt you leave behind, which would be a burden on the family. Debts such as a mortgage, credit cards, car loans, and even funeral expenses can have a dramatic impact on your family and lifestyle.
Peace of mind
A long-term insurance policy is a cheap way to give you and your family members peace of mind, knowing that they will be protected if something happens to you. You no longer have to worry about your financial future and you can easily rest knowing that you will be able to continue with your current lifestyle.
Most people do not think about life insurance at the age of 20, but it is often the best time to buy it.
There are several factors that determine the cost of life insurance in general. The younger and healthier you are when you buy a policy. The cheaper it will be (unless you work in a job with high risk or you have a penchant for extreme sports. But more on that later).
You will have a baby
If you are planning to have a baby next year or so, now is the time to buy life insurance.
First of all, the health of most people decreases with age. The longer you wait to buy a policy. The higher the cost. Second, if you move from two incomes to one – that is, a parent will leave a steady salary to stay home indefinitely. There are even more reasons to create a financial safety net before having children.
However, if you already have a child and the need for life insurance is urgent. Some insurance companies will allow you to repeat your medical examination a year or two after birth and then adjust your rate accordingly
Thanks for reading this article by ExtNext, hope you will learn something about Life Insurance.
