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 well-being of our closest relatives.
Insurance is always intended to externalise a risk. In this case:
The aim of life insurance is to ensure that our children and relatives receive money in case something serious happens to me.: death, serious illness, accident that prevents me from working…
Let's try to illustrate it: a civil servant or a self-employed person or an employee of a multinational company, married and with small children (one 2 years old and one newborn) is worried. She has found out that if she dies only from widow's pension her partner is paid half of her contribution base (52%), and she is used to receiving €2,500, which is the main income in her household.
These are the people who need life insurance. They are aware that if something were to happen to them, their family would be left with a situation of need important.
Solution: by securing a capital, let's say of 75.000 €, They know that for two years, at least, their family would have money to “keep them going”.
Life insurance against a mortgage
When taking out a mortgage, the bank is increasingly demanding that we have certain conditions. We have already talked about the fact that it is not legal to force the customer to take out insurance with the banks. However, they play with the issue of bonuses (although we have already seen, on many occasions, that it is usually worth subscribing with a brokerage firm because there is no comparison in cost).
At that time it is often the first time a person considers life insurance. However, for many people, this is already enough to support them for many years: for the family, for myself (and to cover disability), etc.
Life insurance coverages
The most common guarantee, as already mentioned, is that of the 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 come into the household economy. The widow's or widower's pension is only a percentage of our former salary, so it is often not enough to cover all the expenses.
But can we collect any kind of compensation during our lifetime? The answer is yes, thanks to these two types of cover:
- Permanent disabilityIf 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 illnessesA guarantee that has arisen in recent years, given the number of diagnoses of cancer and other types of illnesses, which provide us with an advance on compensation in order to meet possible disbursements.
The reasons for taking out life insurance
These causes that we are going to detail are the most common ones as determining events for taking out a life insurance policy:
- Being a parent: When this happens, it makes us think about possible events that could jeopardise the economic stability and the future of the family we have created.
- A tragedy of a family member or close friend: Unfortunately, it is not uncommon to hear of such serious events from people close to us, which, again, forces us to think about what would happen if it happened to us.
We must not forget that, even if we are singles and without children, disability is a cause for concern, because of the reduction in income and the increase in expenses that it generates.
For our part, as an insurance broker, we try to offer life insurance with solvent companies with a high level of solvency. competitive prices and, above all, that the customers contract what they really want. Too often we find insurance that policyholders do not need, and it is a pity that they overpay. If you are looking for a life insurance, we are what you need.
