Types of life insurance. Life insurance is a contract that is made between an insured and an insurer – at least in the simplest terms. The insured, or perhaps the policyholder, must cancel a premium, which will be a guarantee for the insurer, in the event of the presentation of a certain event and / or risk situation, to compensate the insured.
The purpose of life insurance will be to compensate a person who can be responsible for the insured with a certain capital. Everything is going well up to this point. We already know what life insurance consists of, in basic terms. But do we know the different types of life insurance that exist? Let’s get to know them next.
What types of life insurance are there?
Life insurance is a resource of great useful value, because it will allow us to have a source of money in a very complicated moment, such as the death or indisposition of a loved one due to health factors. This reason makes life insurance a cost-effective long-term option, and therefore, a highly sought-after service.
The key point then lies in knowing what can be, among the types of life insurance, the one that can be most beneficial. In this regard, these are the multiple models that can be found.
Permanent insurance
Also called whole life insurance, it is a contract in which coverage is established throughout the life of the insured. There are no deadlines in this insurance, and compensation will be activated shortly after the insured dies.
Permanent insurance can, in turn, be presented in two modalities, one known as the temporary premium or the other as a lifetime premium.
Term insurance
Temporary insurance is characterized by offering coverage delimited in a period of time respectively. Mostly, they usually have a coverage of one year, and at the same time, they can be renewed.
Thanks to this modality, they usually have much more affordable prices than other plans, such as permanent insurance.
Death insurance
As the name implies, this type of insurance will be responsible for providing coverage to the insured in a situation of death.
The insurer will be responsible for canceling, shortly after the death of the insured, the premium in order to guarantee the necessary funds to administer the funeral processes of the deceased.
Sometimes, death insurance can also cover risk situations, in which the insured has not exactly died. For this case, they are known as death risk insurance, and can be presented in two types, temporary insurance and permanent insurance in this regard.
Savings insurance
It is a “mixed” insurance, which integrates the conditions of life insurance, valuing the use of the first before the disability of the person or, as we assume, the death of the same.
In the same way, it will integrate a savings plan -hence its mixed insurance name-, which will allow the insured to collect the capital saved in case he survives his death.
Why should you have life insurance?
Life insurance is a very strategic resource, thanks to the fact that it will allow a person with income, to have an alternative plan for either your person or your family in case you become indisposed, or worse still. But if this wasn’t enough, below are some reasons to take out life insurance.
An adaptable service:
Life insurance can offer packages tailored to the needs of their customers. This will give much more meaning to your investment, and in this way, you can enjoy a service specially designed for the client’s family respectively.
Tax-free process
One of the points that characterizes life insurance is that they are exempt from any commission or subtraction for tax. In this sense, the compensation will reach the insured in a complete way, thus being able to take full advantage of it.
Protection
Above all, in the most difficult moments, such as an accident or death of a person. A person can enjoy insurance in which he can protect his entire family, managing to protect them in case of an unforeseen event.
Security guarantee
At the time of having insurance, which we have insured and do not have economic resources, you can count on this service during a complicated situation. This will offer you guaranteed security, managing to face any unforeseen event successfully.
Adjustable system
People can redefine the clauses of their insurance, so that they can adjust it to their current needs. This will greatly increase its useful value, as it will allow them to define it according to their current economic situation so that they can at least sustain it as a valuable resource.
A resource within reach
Life insurance is a truly important tool to ensure not our safety, but also that of our closest relatives. Despite this, a significant number of people still do not consider the idea of opting for insurance.
It is known that insurance can offer different payment and coverage packages. Therefore, many people could easily adapt to the payment clauses that each insurance must establish respectively. It consists then of a resource within reach, with which we can make an investment in favor of the future of our person and our family.
External resource: Wiki
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