The main reason a life insurance ensures that the insured and his family maintain the standard of living accustomed passes, having our loved ones insured before our absence.
Life insurance is not a matter of a mandatory nature, it is more than advisable. They are products designed to offer families economic relief in the most difficult times. We explain why life insurance is important and what kind of coverage they offer.
How necessary is life insurance?
Unlike car insurance, hiring a life policy is not mandatory, however, it becomes important when in the most difficult moments you may need financial support.
What if I die, can life insurance protect my family?
Life risk insurance aims to become an economic pillar for family members who in one way or another depended on the insured. Thanks to this compensation, the beneficiaries would be able to go ahead and face the main family obligations.
1. Cancel the mortgage in case of death
The death of one of the family members can destabilize the household economy. In this sense, being proactive and taking out insurance to cancel the mortgage with the insured capital is the most advisable.
If you are looking to free your relatives from bank charges in case they can no longer count on you, do not hesitate to take out life insurance. Keep in mind that, although many banks will try to get you to take out a life policy with them to grant you the mortgage, the reality is that the law does not oblige you to take out any type of insurance that the bank sells.
2. Cover the expenses involved in a funeral
Personal loans, outstanding charges to credit cards and the expenses related to the death ... When a loved one dies, expenses emerge in the midst of the pain and grief caused by a situation as difficult as the death of a family member.
Life insurance includes coverage of burial or cremation expenses, thus preventing family members from having to face the high costs involved in a burial.
Types of insurance
Life.
Relief.
Personal accidents.
Vehicular.
Health care.
School Insurance
What are the types of life insurance?
There are two different ways to take out term life insurance: Level Term Life Insurance and Decreasing Term Insurance. Level Term Life Insurance: means that death benefits remain the same for the life of the policy.
How good is it to have life insurance?
Protect your family after death.
This is one of the main reasons why people are looking to take out life insurance. No matter what the reasons for the death, we can rest assured that our family will continue to be financially protected.
What does whole life insurance cover?
Whole life insurance is one that will always be charged because it has lifetime coverage. It is a lifelong insurance that can be rescued by the holder if he needs it (for example when he retires) or collected by his beneficiaries or legal heirs in case of death.
What is a trust in life insurance?
It is a service so that instead of giving your beneficiaries the total of your insured sum or savings in a single display at the time of death, disability or at the end of your savings insurance, it is delivered according to your specific instructions, while your money generates attractive returns.
How many types of life insurance are there?
There are several types of life insurance. Basically, there are four modalities, which are: risk insurance or for cases of death, savings insurance or for survival or retirement, mixed insurance and income insurance. Each of these life insurance modalities has its own characteristics.
What is the most important thing about life insurance?
Life insurance protects individuals, providing them with the economic stability they need in situations as difficult as the death or total disability of the insured. In this way, the children could continue their studies or the family home could be retained.
What doesn't life insurance cover?
Practically all life insurance excludes from its coverage the death or disability of the insured as a result of an air accident if it has occurred in a means not authorized for the public transport of passengers, regardless of whether he was a passenger or crew, or according to the terms of your insurer.
Who takes out life insurance?
It can be hired by people between 18 and 65 years old. Some insurers offer financial support in case of accident, illness or any situation that makes it impossible for you to carry out your daily activities. You can select additional coverages depending on your needs.
What is better insurance or trust?
Advantages of the Educational Trust
The contribution period can be less than with insurance and being an instrument for the education of your children, it is tax deductible. In addition, trust institutions usually have agreements with universities, both national and foreign.
Why should a trust?
Trusts can help you manage your assets, but you can also use them to ensure that your wealth is distributed when you are no longer in accordance with your wishes to provide security for your loved ones, allowing them to save money and time on paperwork and paperwork.
What is a trust advantages and disadvantages?
One of the advantages of the probate process is that it has the protection of a court. However, with a living trust, the whole process is private and depends on the trustee. This can be considered a disadvantage in some cases. It is possible not to adequately fund a living trust.
How do I pay for a trust?
These obligations are understood to be fulfilled on behalf of the trustees, being the ones who must pay the tax definitively when submitting their annual return, in which they must accumulate their part of the fiscal result and may prove the provisional payments made by the fiduciary
What are the types of trusts that exist?
Some of the most frequent contract types on the market today are:
Testamentary trust. ...
Trust as a means of payment. ...
Estate Planning Trust. ...
Structured trust.
Who is a beneficiary in a trust?
The beneficiary is the person for whose benefit the trust has been constituted. Example: assets are transferred to the trustee so that he can administer it and pay with his income the expenses of education of a minor relative of the trustee.
How long can a trust last?
50 years
What is the duration of the trust? The duration of the trust is 50 years, with the possibility of requesting an extension for the same period