Life insurance can be very beneficial: here's what it is and what types exist. The subject is morally difficult, as feelings such as conscience, love, and affection for family members are the driving forces behind this investment. In fact, life insurance is a gift given to those who love each other and their loved ones, as economic recognition is activated in the event of the death or serious disability of the insured, allowing for a prior economic premium. Technically, what happens is that the insured decides to provide their loved ones with a lump sum and, at the time the contract or policy is established, decides who will benefit from it in the event of misfortune.
Life Insurance Policy: Types and Cases
As we have already mentioned, a life insurance policy is nothing more than a written agreement, a contract concluded with an insurance company. This contract contains clauses that must be respected so that the surviving person can receive money. The insurer informs the client of the amount to be insured, the duration of coverage, and the minimum and maximum amount to be paid for the annual premium. However, not all policies and cases are the same, which is why there are three types:
- Death Case Police
- Life insurance policy
- Mixed police
If the policyholder decides to take out a death benefit policy, this means that in the event of death, their beneficiaries will receive the entire paid-out capital. This type of insurance differs from term policies, where the policyholder dies while still paying the policy amount, while a whole life policy is triggered when the beneficiary receives the money after the policyholder's death.
Another type of insurance is the mixed policy, which guarantees (whether the insured is alive or not), in this case the beneficiary to receive the capital. The last type of policy is life insurance under the microscope. First, the insurance company pays the policyholder while alive upon conclusion of the contract. This type of insurance is a kind of piggy bank, an investment for retirement and beyond, especially for those who want to protect themselves against precariousness, which is variable and useful especially in single-income families with young children.
In the latter case, the policyholder decides in the contract stipulation, and according to his needs, the duration of the premium, which varies from 5-10 years to 30-35 years. The payment can be made in one go or in several installments. In addition, the amount varies according to age (the younger you are, the less you pay); the state of health and the lifestyle you lead; the duration of the payment, the amount you want to guarantee to your beneficiaries and an agreed fixed premium (all parameters that can also be modified over the years).
In case of urgent need, the payment of a certain amount from this policy for retirement purposes can be received immediately (immediate annuity), which occurs as soon as the contract is stipulated. The payment of the money can also be deferred (deferred annuity) or later, even after years, as agreed with the company in the written insurance contract. Many people confuse this type of insurance with the pension fund, which was created for those who want to receive an additional pension in addition to the state pension. In this case, the money is paid to insurance companies, banks, and asset management companies.
Affordable in many ways, a life insurance policy can make life easier for family members and everyday life in general. It can be a useful guarantee for the future of loved ones, as well as a form of investment that can be used for personal purposes. Every family has several monthly expenses, related to basic necessities or daily comforts, and if life is constantly changing, we can't help but think about the unforeseen events that can seriously compromise our lifestyle.
You may also like
Black box car insurance: what it is and how it works
If you're looking for a quick way to save money on your car insurance policy, you should know that the solution is truly within reach. In recent years, black box car insurance has emerged on the market, offering customers practical and cost-effective benefits. Save on car insurance by installing the black box Let's start with… Poursuivre la lecture Black box car insurance: what it is and how it works
Buying and selling a wrecked car: is it possible?
Do you own a car that is old , damaged , or in need of major repairs ? Perhaps you are even considering selling it to raise some money to finance the purchase of a new vehicle? In this article, we'll give you the right information on how to get the best possible value for… Poursuivre la lecture Buying and selling a wrecked car: is it possible?
Opening a bank account online
Opening an online bank account is a very simple procedure that can be done directly from home: all you need is a home internet connection or access to the internet even from a mobile phone, in hotspot mode. Given that there are many offers available on the internet, some of which belong to 100% digital… Poursuivre la lecture Opening a bank account online
Pet Insurance: Why It's the Best Choice
Considering coverage for both our pets and those who have or will have to deal with them means obtaining total protection against any inconvenience that may arise. Consider, for example, the possible damage one of our pets could cause to a neighbor's property, and the police would come to our aid. At the same time,… Poursuivre la lecture Pet Insurance: Why It's the Best Choice