Life insurance is one of the best strategies to protect your future because, as you well know, it covers some of the most critical issues, such as the risk of death, survivors ‘ and disability. Reasons are more than enough to have a product with these characteristics. As with other users, you will need some clarification on the convenience of subscribing and, above all, how to manage it correctly to optimize its contents. Are you willing to perform this self-reflection exercise? Well, if so, you will have no choice but to ask yourself the following questions about these policies.
As you know by experience, life can change at any time and, in this regard, must be protected by life insurance. Although it will be very relevant to consider some characteristics of this product for its formalization, it will never be positive to improvise with the incidents that may develop from these moments.
Why is Life Insurance Characterized?
These products are primarily distinguished by their recruitment, which happens on charge compensation in cases of death or disability. That is, they preserve your physical integrity over other considerations. However, indeed, they can also serve as a guarantee of payment in some scenarios.
On the other hand, you cannot forget that these policies can be formalized, both individually and collectively, unlike different types of insurance that only admit the first of the modalities. So, in this way, you are in perfect condition to select the people you want to protect from these moments: your wife or husband, children, or even the parents themselves.
Why is Your Subscription Beneficial?
You may not know it, but the formalization of this insurance product allows you to have complete protection in the most unfortunate cases. Not only for you as the owner of this but for the whole family if this is your wish. In addition, it is a very flexible format, meaning there is as much insurance of these characteristics as you can imagine. You only need to detect what you need to establish your coverage from the beginning, under your most immediate priorities. It is also necessary to assess that the beneficiaries of life insurance will receive capital in the cases contemplated but without having to pay these amounts in inheritance and donation tax. In practice, it will mean that you will save more money in paying this kind of general fee. Another incentive to hire them is that they will give you much more peace of mind for the next few years before what may happen. Not in vain.
Can I Hire More than One Insurance?
Unlike most individualized insurance, in-life policies, you can formalize as many formats as you want and allow you your economic situation. It is essential to consider an additional product of these characteristics that contemplates another coverage. For example, ensure your children’s studies or even get financial compensation for the lack of income derived from a physical incidence of disability. On the other hand, in specific social segments, its practicality is even more significant and can help you get out of more of a hurry from these moments. If you are self-employed, you will have even more reasons to consider hiring for life insurance, mainly due to the shortage of income in the face of some of the situations mentioned above. Not surprisingly, you will not be so unprotected by accidents, injuries, or illnesses.
Do They Always Have the Exact Economic Cost?
Of course, not since the amount depends on many factors to consider. In any case, you can always benefit from the promotions that insurance companies have been developing, from which you get significant savings. For example, Zurich allows you to create life insurance according to your needs and a personalized price with this. It will let you substantially save by hiring exclusively the best for you.
Due to the change in the Mortgage Law, which prohibits banks from obliging clients to contract linked insurance, insurers have the possibility of improving conditions for individuals, making life insurance a significant saving.
According to a study by INESE and Global Actuarial, savings that can be obtained by contracting life insurance in an insurance company compared to having it with the mortgage goes from $10, without considering the account number of links that the mortgage implies.
What Capital Should You Insure?
One of the most significant uncertainties that can accommodate formalizing the contract is what you need capital. Of course, there are no fixed or strict rules to solve this puzzle, and everything will depend on your real needs and income in your checking account. But for guidance purposes, it will be essential that you include capital below your annual salary. That is, if you earn around $25,000 a year, it will be sufficient for you to allocate no more than $8,000 to this concept. Not surprisingly, a miscalculation can play tricks on you. In addition, it is beneficial that you add the debts contracted with your bank to protect yourself from any incident in the coming years.
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