There are many reasons why life insurance is crucial for certain people, especially when they have family members to take care of. However, without forgetting the permanent disability cover which is essential, for the reasons we will now see.
Life insurance coverage
A life insurance is made up of several guarantees:
Death
This is the basic coverage of this insurance, which is no more than a sum insured to be paid to the beneficiaries chosen by the policyholder, on the death of the insured person in the policy.
These beneficiaries could be: spouse and children, usually; but we also find the bank, sometimes, for current mortgages. It is important to assess the inheritance tax so that the heir's tax burden is reduced as much as possible; hence the need for good advice.
Remember that the S.S. would pay the widower 52% of the deceased's regulatory base.
That is: for a salaried worker, about half of what he or she earns; for a self-employed person, considerably less in the vast majority of cases.
Permanent Incapacity
This guarantee is optional, although we advise you to contract it., The cost of the situation for the person and his/her relatives is very high: adaptation of car and housing, surgeries, specialists and rehabilitation, carers; in many cases reduction of income...
As much as Social Security can pay 100% of the regulatory base, it is impossible to cover everything, especially at the beginning, with the expenses involved.
But, let us remember that there are several types of permanent incapacity:
- AbsoluteDisability: that which disqualifies you from any profession. This is the one that is usually covered by life insurance. It is usually taken out by people who do not carry out manual work, which is why we will now comment on it.
- Total or Professional: is only disqualifying for the profession you are in. Our advice is to subscribe is in professions with manual work: doctors, dentists, plumbers, mechanics, physiotherapists... These people live from their hands; if anything happens to them in one of them, they will not be given absolute incapacity, but they will probably be given total incapacity. With that money, they could redirect their career or, at least, compensate for the reduction in income, since the Social Security pays only 55% of the Regulatory Base.
In addition, there would be other optional guarantees such as the «serious diseases».» (which is additional capital that would also be charged), but it is not often subscribed.
Who should have life insurance?
In view of the coverage, we would like to recall which persons are most likely to take out this insurance:
Dependent children
Social Security benefit will help, but third party assistance will be needed for the widower to continue to work and generate income for the family, so additional support is needed.
Self-employed
Around 90% of self-employed people under the age of 50 pay the minimum contribution. This means that the widow's/widower's pension was €394/month in 2015, instead of the income generated by this person. There is no profile more in need of this policy than them. The insurance for the self-employed are vital, both life-saving and life-saving.
People above the maximum S.S. contribution.
A partner/administrator, earning over €4,000 a month, means that for social security purposes he does not earn that, but €3,606, so that the benefits offered by the social security system are insufficient for his family and need to be supplemented. This goes without saying for people with a gross annual income of over €60,000.
Let us remember that partial disabilities can only be covered by accident insurance., never one of life. This issue will be dealt with in another entry.
If you want complete advice on this subject, to know your personal situation, the life insurance capital that would be appropriate for your personal and professional circumstances, ask us. We have already explained to you that, after several studies, it has been shown how the life insurance is cheaper in the companies that in a bank
At PIB Group Iberia and Investment you'll find the advice you're looking for and the best life insurance.
