Life insurance can be contracted to cover the death of the policyholder or return it for your money. There are 2 types of life insurance: Life Savings and Risk Life.
Life insurance is the provider of protection against death and disability of more than 30 million Spaniards. One third of them have hired individually, and the other as a group insurance contract for his company or for several members of the same family. This is an insurance product widely used by the help it represents for the families and relatives when the death or disability of the policyholder, especially when they are directly dependent on their income or is linked to a loan of any kind occurs.
At the time of hiring a life insurance policy, like to subscribe any other insurance, it is important to have clear issues such as what is life insurance, what types there are, what they cover, who hires and where.
What is life insurance?
Life policies are part of so – called safe for people and consist of the payment of a premium previously stipulated to receive in the event of death or disability an amount that mitigates the lack of income of the insured.
The amount of the premium to the insured facing depends on the risk and the dollar amount you want to receive in case of disability or perceived beneficiaries in the event of his death. In addition, the final award of the policy can be received in a lump sum or as an annuity, as desired by the insured or beneficiaries.
Life insurance rates
The choice between life insurance and Risk Life Savings depend on the purpose desired by the insured for your policy. Thus, the first of which is contracted to obtain a return on paid premiums, while the second beneficiary receives the capital stipulated when the death of the policyholder occurs.
Life Insurance risk
Life insurance to cover death is called Life Risk, and function of coverage is the beneficiary of the policy receive capital stipulated therein when the policyholder dies. Therefore, unlike other insurance as the Health, in the case of Risk Life policyholder and the beneficiary they are not the same person.
Whole Life Insurance
The form of whole life consists of the payment of principal designated in the policy just after the death of the insured, regardless of when it occurs. Furthermore, within the same you can choose between annuity premiums or temporary. With the first payment is made during the life of the insured, while the temporary premium payment is made for an agreed number of years or until death if it comes before the expiration of the policy.
Term Life Insurance
These life insurance covering the risk of death during a specific period of time stipulated in the policy. This type is contracted to the repayment of loans. For example, the insured dies and had a pending mortgage insurance covers the outstanding amounts.
The obligation acquired by the insurer after signing comes to an end at the time the contract expires and the company does not have to make any payment to the beneficiary if death does not occur during the term of the contract.
In this mode there is no possibility of rescue benefit, but may be convertible into or renewed annually with the payment of the premium to go temporarily expanding insurance coverage.
Life Insurance Savings
Insurance Life Saver is also called if life, and hiring the beneficiary, in this case it is usually the taker himself, receive capital if you live when you get the expiration date of the policy. Is to pay a premium that grant the insured profitability, an investment that offers low interest although compared to other savings products have a reduced risk. However, the tax advantage is not taxed on the profits obtained but only to collect it.
These policies may be purchased as Unit Link, Insured Pension Plans (PPA) or Individual Systematic Savings Plans (PIAS) and usually subscribe to supplement retirement income, although this is not its only function.
Life insurance Mixed
On the other hand, some insurance companies offer insurance Mixed life, that guarantee payment of a lump sum to the beneficiaries of the policy in case of death of the insured. They can also crediting the policyholder in the event that reached the maturity, the insured continue with life. At present, most life insurance savings contract are of this type, incorporating the pure characteristics of a policy of saving capital for death or disability.
Who hires Life insurance?
There is a certain tendency to contract life insurance when you already have an advanced age, although its importance and benefits not only focus on that range, in fact hire when you’re young has advantages. In 2005 more than half of the new contracting of these policies were between 25 and 44 years, a trend that held a few years later but in 2013 happened to be between 35 and 44 years. The feature that prevails over time is that of people who have relatives dependent on them and intend to hire this insurance product guarantee their welfare if they pass something to them.
Protect the family and the insured himself for what might happen are just some of the reasons why you should hire a life insurance, but also made to cover the mortgage.
Life insurance and mortgages
By signing a mortgage banks tend to link it to the hiring of a life insurance or home. That is why the top of the list of companies with which such guarantees are hired are occupied by banks. However, although the obligation imposed on them the subscription, the user can decide whether to hire your bank or go to the insurance you want.
Hire a Life insurance
Choosing what life insurance contract can be a heavy task, but the needs of each user determine which the best is for everyone. This policy may grant you many benefits, especially the safety of your loved ones will be protected in the event that anything happened. When you go to hire note all coverage and exclusions of the policy and be honest in the questionnaire that made you the insurer about your health to be correct and the insurer will compensate you or your beneficiary in the event of a claim.