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What is life insurance and what is it for?

Life insurance is a plan that guarantees peace of mind and financial stability for the family, in the event of the death of the insured. Life insurance also serves for the fundamental formation of savings, so that in the future it can be converted into a Life Income, which the insured can enjoy in life, as a just reward for their long years of productive life.

Currently having life insurance is extremely important, to prevent events that may happen in the future, make a timely protection decision, guarantee the continuity of the projects and wishes of the family.

life insurance is a guarantee to face adverse circumstances for the family. Although on many occasions there is ignorance about what life insurance is and what it is for.

What is a insurance of life?

This is one of the types of insurance that are classified in the category of personal or personal insurance and it is a plan whose main objective is to serve as a substitute for the resources that a person generates.

The type of insurance contracted depends on different factors such as age, insured amounts, guarantees (guaranteeing balances to creditors), the coverage will depend on the need for coverage of each person.

There are life insurance for death, mixed survival, temporary, of different types of coverage and purpose. It is important to mention that age is a determining factor in the cost of purchasing insurance, the sooner coverage is acquired the more favorable.

In life insurance, two important concepts must be defined:

  • Insured:  strictly speaking, it is the person who is himself exposed to risk.
  • Beneficiary:  person designated in the policy by the insured or contractor as the holder of the indemnification rights established in the policy.

The way in which life insurance works is a payment of premiums to the insurer according to the income, coverage and other aspects contracted by the insured in the policy. Upon death or living, ending the term of the insurance, the rent is granted to the beneficiary or insured.

Life insurance can be directly associated or related to savings, but with established clauses and a structured plan to allocate it to a specific objective, knowing then that life insurance is not only useful in the event of the death of the insured.

What is death insurance?

This type of life insurance covers compensation to the beneficiaries in the event of the death of the insured, according to the coverage contracted and the causes of death of the insured.

What is survival insurance?

They are also known as savings insurance and basically consist of delivering the contracted rent to the insured at the end of the term, according to the conditions of the policy and the accumulated savings at the time of the policy conversion.

What is mixed insurance?

This type of insurance combines those of death and survival, by delivering a certain sum when the insured dies or, an income if the insured lives at the end of the term.

Another classification of life insurance is ordinary, temporary and endowment, but regularly they have the same characteristics as the previous categories.

What is life insurance for?

It is a plan that generates savings and guarantees economic stability for the family in difficult circumstances. Just as the grandmothers say, ” Today we are, tomorrow who knows ” That is why it is important to have a forecast and more when there are people dependent on a person’s income or income.

Attracting or calling evil is not good ( says a popular saying ), but think of circumstances such as death, disability, or old age. A life insurance is a method to predict these kinds of circumstances and guarantee compensation, savings or form of protection for your family.

On many occasions, people doubt life insurance, and it is true that there are exclusions or restrictions, but it is important to know them to have the conviction that more than an expense, life insurance is an investment plan that will make profitable and provide profits or fruits in the future.

Conclusions

You may have heard about life insurance and how important it is for future circumstances. Now that you know what they are and what they are for, you can choose the one that best suits your personal or family situation, always seeking to guarantee the stability and well-being of your family. Life insurance is a legacy of love, for people who love each other.

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