CHOOSE THE BEST LIFE INSURANCE
Ensuring financial and family security is a priority for the vast majority of people. Although this concern is growing more and more, life insurance is still seen by few people as something that should be part of family financial planning and there is still a lot of difficulty in choosing the best life insurance for each case.
Investing in this modality can guarantee not only the safety of your projects, but also the financial protection of your family.
To help you when choosing the best life insurance, we have prepared this complete content on the subject with tips for you to make the best decision. Keep reading and check it out!
After all, what is life insurance?
Life insurance is protection against possible events and accidents that may happen against the contractor. If they occur, the beneficiary, chosen by the owner of the insurance, receives compensation.
The main coverage of this type of insurance is in the event of the death of the contractor, whether from natural or accidental causes. But in addition to the death of the holder, life insurance can also include coverage against other events, such as accidental disability, medical and hospital expenses, funeral assistance, serious illnesses, among other situations. This will vary according to the insurance company and the contracted modality.
How does life insurance work?
Life insurance works similarly to other types of insurance. Usually the holder makes a simulation of the insurance according to his wishes and needs, choosing an amount for the insurance coverage.
After agreeing to the contract that specifies all the coverage and rules of the insurance (the policy), the contract is made. The amount that will be paid will depend on the risk profile of the insurance holder and the coverage chosen by the same.
When one of the events for which he has coverage happens, it is possible for the holder to trigger the insurance and ask for compensation. In the case of death or total disability of the contracting party, the beneficiaries who must activate the insurance to receive the amount indicated in the policy.
What are the types of life insurance?
Before taking out life insurance, it is extremely important to identify, preferably with the help of a professional, your needs and to know the main options available to meet them. Normally, what differs one type of insurance from another is the duration and possibilities of redemption of the policy. Check out the most common life insurance models now:
- Traditional life insurance: This type of insurance offers lifetime coverage, but is only valid as long as the policyholder is paying. The insured may choose to withdraw from the insurance at any time, but is not entitled to recover the amount paid.
- Redeemable: Allows the insured to redeem a percentage of the total amount paid after a grace period in case of withdrawal.
- Temporary: This modality is not redeemable and it may or may not undergo age reclassification. It usually offers the same coverage as traditional life insurance, but it is only valid for a predetermined period, being canceled after that period.
- Personal Accidents: Personal accident insurance provides a very simple type of coverage, covering temporary disability and accidental death.
understand some terms
When we started to research more about life insurance, we ended up coming across a series of terms that for many are still unfamiliar. So, if you are planning to hire one, know that it is very important to seek information and have a greater understanding of these terms and what they say about options. Check out some of these terms and their concepts now:
- Policy: contract issued by the insurance company that declares the coverage and conditions of the insurance.
- Sinister: event provided for in the contract.
- Premium: is the amount paid to the insurer, which is calculated based on the possibility of a claim occurring within the term of the contract.
- Coverage: risks that the insurer undertakes to support.
- Term: period referring to the validity of the guarantees prescribed in the contract.
- Grace period: this is the period for which the insurer does not undertake to pay any compensation in the event of a claim.
- Beneficiary: is the person chosen by the insurance holder to receive the indemnity amount.
5 tips to choose the best life insurance
Hiring life insurance is important , but first, it is necessary to pay close attention to some aspects to ensure that the contracted service is exactly what was planned. Here are 5 tips to help you choose the best life insurance for your profile:
1. Define your goals
Before deciding which is the best life insurance option for you, it is very important that short, medium and long-term personal and professional plans , as well as your family and financial plans, are evaluated . If your intention is to get married and have children, or even if you don’t want to increase the family, there are several complete options that aim to support your need.
2. Calculate the ideal indemnity
When choosing the best life insurance for you, it is important to keep in mind your living costs, that of your family and/or other dependents, understanding the expenses necessary for the insured to maintain themselves in the event of any fatality.
The best way to calculate the compensation is to understand the amount necessary for the stability of the family income. It is important that the insurance meets at least the amount referring to essential expenses, such as rent, food, education, among others.
3. Put the investment with insurance within your financial planning
When choosing a policy, it is necessary to evaluate the cost of the investment that will be made in life insurance and compare it to your family income, thus analyzing how this value will affect your financial health. It may seem obvious, but it is worth mentioning that you should not invest in an insurance modality with a value that compromises your finances.
4. Choose the beneficiaries
As already mentioned, the beneficiary is the person, whether physical or legal, who will receive the amounts of the insured capital if any of the covered events occurs. That is, your beneficiary can be any person or company that you wish to include in your insurance policy.
5. Seek the help of a reliable insurance broker
If you want to invest in life insurance, know that it is essential to have the help of an insurance brokerage that is reliable and can help, giving all the support and assistance from the moment of quoting the plans, from the hiring itself. and even with post-employment support.
As we can see, having good life insurance can be a good decision when it comes to financial security. Be sure to use our tips to make the best choice. Remember that insurance must be chosen very carefully so that it can really fulfill its function of bringing more tranquility and security to you and your family.