At tusegurosdevida we think that the older we get, the more time we find ourselves thinking about unsexy topics like wrinkles, our body and mood changes, retirement plans, and in the future and of course, what will happen to our family when we we are no longer Yes, in Life Insurance , because one day we are all going to kick the bucket, in many cases leaving behind economic dependents.
Table of Contents
The need for life insurance
This is the summary of how life insurance works : If you have people who currently depend on you, in whole or in part, for financial support, life insurance will help provide the financial stability they need.
hints of what you need
What are the signs that tell us that we may need this type of insurance:
Are you married.
You have children or if you are about to have them.
You are caring for other family members who depend on you financially.
You have a debt with a bank for loans or a mortgage and that the debt could fall to your partner and continue paying if you die.
So, if you decide what you want or need, what should you buy and where should you get it?
There are three main types of life insurance:
DEATH, where a capital is insured for the beneficiaries in the event of the death of the insured.
SURVIVAL, If the insured lives at the end of the contract, the beneficiaries are guaranteed the payment of the contracted capital
MIXED, A capital is insured both for death and for termination of contract.
Why take out Life Insurance?
The need for life insurance will depend on your personal and financial circumstances. The personal guidelines to be taken into account are: do you have a spouse, small children and are you responsible for their well-being? Are your parents elderly or do they have a disabled person in the family? Do you need capital to set up something independent or for private use and Can insurance help? Is your retirement or pension too low to maintain your family’s standard of living if you weren’t there? . If you have answered yes to one or more of these questions, you can think about taking out life insurance, for your peace of mind and that of your loved ones.
Life insurance is also often used to pay for estate taxes and funeral expenses. Also thinking about the educational future of your children, it can be used to pay for academic studies.
What is the ideal Life Insurance for you?
Choosing insurance is not an easy task, but choosing correctly can mean significant savings. Remember, Life Insurance is a benefit , not a burden. For how long would you need to be insured? How much do you think your family would need, to be able to live when you die? Would you only want coverage or also create an investment fund, for your retirement or to pay for your children’s university? Would you need to anticipate the payment of the mortgage on your home to avoid economic constraints for your loved ones?
If you are the only source of income , you will have to think about coverage that allows your family to support themselves until they achieve another source of income or your spouse gets a job. But, if you are single and live with your parents or alone, you do not need Life Insurance. Because you do not have anyone who depends on you, you will only have to provide some savings, for the funeral and other small expenses.
To decide if you need Life Insurance , you should consider the number and ages of your children or dependents, the needs of your family and the money needed to survive until your new financial situation is resolved . The insurance does not necessarily have to be for life, you should review your insurance needs periodically and if your income changes or your children become independent, you may no longer need insurance or at least the same type of insurance