A life insurance policy aims to obtain compensation in the event of the occurrence of any of the causes foreseen in the policy. The most common is to insure the possible death of a person, but we will see how we can also collect it in life.
What is life insurance?
Little by little people are becoming more aware of its usefulness and the need to subscribe to one, especially for the future wellbeing of our closest relatives.
Insurance always aims to externalize a risk. In this case:
Life insurance is a way of guaranteeing that our children and relatives will receive money in case something serious happens to me: death, serious illness, accident that prevents me fromworking
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Let’s try to illustrate it: a civil servant or a self-employed woman or an employee of a multinational company, married and with small children (one 2 years old and the other just born) is worried. She has found out that if she dies on widow’s pension only, her partner will be paid half of her contribution base (52%), and she is used to receiving €2,500, being the main income at home.
These types of people are the ones who need life insurance. They are aware that if something were to happen to them, their family would be left in great need.
Solution: by insuring a capital, let’s say €75,000, they know that for at least two years, their family would have money to “get by”.
Mortgage life insurance
When taking out a mortgage, the bank increasingly requires us to have certain obligations. We have already talked about the fact that it is not legal to force the client to take out insurance with the banks. However, they play with the issue of bonuses (although we have already verified, on many occasions, that it is usually compensated to subscribe them with a brokerage because there is no comparison in the cost).
At that time, it is often the first time a person considers life insurance. However, for many people, that is already enough to keep it for many years: for the family, for myself (and to cover disability), etc.
Life insurance coverages
The most common guarantee, as we have already mentioned, is that of death. Thanks to the money that our family will receive, they will be able to make up for the lack of income that used to enter the domestic economy. The widow’s pension is only a percentage of our former salary, so it is usually insufficient to meet all the expenses.
But, during our lifetime, can we collect any type of indemnity? The answer is yes, thanks to these two coverages:
- Permanent disability: if we are diagnosed by the Social Security, the company will pay us the insured amount for that event. There are several types(absolute or total disability).
- Serious illnesses: a guarantee that has arisen in recent years, in view of the number of diagnoses of cancer and other types of illnesses, which advance us an indemnity to meet possible disbursements.
Reasons for taking out life insurance
These causes that we are going to detail are the most common ones as determining facts to subscribe the life insurance policy:
- Being a parent: when this happens, it makes us think about possible events that could jeopardize the economic stability and the future of the family we have created.
- A tragedy of a family member or close friend: unfortunately, it is common to hear about this type of serious events involving close people, which, once again, forces us to think about what would happen if it happened to us.
We must not forget that, even if we are single and childless, disability is something to worry about, due to the reduction in income and the increase in expenses that it generates.
For our part, as Insurance Brokers, what we try to do is to offer life insurance in solvent companies, with competitive prices and, above all, that the clients contract what they really want. Too many times we find insurance that the insured do not need, and it is a pity that they pay too much. If you are looking for life insurance, we are what you need.
