Depending on the expectations and interest of the insured, it is possible to choose different types of life insurance
Life insurance is a guarantee to face risk situations with greater financial stability and good advice. Each person offers a different sensitivity to certain concerns ( death, illness, old age … ), so each of these aspects must be addressed to adapt each type of insurance. These policies offer protection systems and coverage guarantees to face different situations.
1. Family economic coverage
Ordinary life insurance proposes the payment of premiums by the insured to guarantee the economic protection of one or more beneficiaries during a specified period. What is sought above all is to provide financial resources to family members in the event of the death of the insured. It is possible to take out life insurance at any age, but the most common audience for this type of policy is located in forty-year-old individuals with financial commitments within a family nucleus.
2. Take out a mortgage
If we pay attention to the legislation, the latest mortgage law has abolished the obligation to take out life insurance when it comes to getting a mortgage. Financial entities are obliged to offer alternatives or to allow their clients to contract policies on their own account . Even if there is no legal obligation, banking companies require mortgage applicants to have life insurance in order to grant it.
3. Facing situations of disability
Not only life insurance is oriented to offer economic support to the beneficiaries in the event of the death of the insured. There is also the type of insurance that offers economic coverage in the event that the insured suffers a situation of permanent disability . In this way, it will provide financial resources to both the family and the affected person to be able to cope with this situation.
4. Continuity of studies
If the death of the insured occurs, on which the payment of studies depends, a life insurance can guarantee the continuity of the studies . There are specific policies designed so that either the insured’s children, as well as other family members who depend financially on him, may have financial stability to pay pending payments for their studies. In this way, the financial obligations related to the studies are not compromised.
5. Prepare for retirement
Within the types of savings insurance, there are a series of products that are specifically oriented for retirement. One of these is the Insured Pension Plans , which generally have better treatment when it comes to paying taxes. In return, they have restrictions such as their liquidity when it comes to recovering the money early. It is essential to inform if you want to save money for retirement or another vital moment, since it will be key before purchasing life insurance with savings . In this way, it will be clear to you that it is a suitable policy for this type of need.