If you are thinking of protection for your family, heritage and your own person, hiring life insurance may be the best solution, but the question is complicated when knowing how to choose life insurance that really covers your needs effectively in every moment.
The insurance companies of life offered a lot of personal products, which can complicate your decision on how to choose a life insurance by offering different policies with single or combined coverage to ensure capital depending on each type of risk.
That is why in this article we explain some tips that can help you on how to choose life insurance depending on your circumstances, and priorities.
Tips for choosing life insurance
Know some basic terms
One of the issues that may be important before coming to life insurers is familiar with some of the terms used in policies, in order to understand contracts.
What is a life policy?
It is the insurance contract, and it includes all the guarantees with its capitals and the rules by which it will be governed.
What is the coverage?
These are the risks protected by insurers, and analyzing the different offers of coverage can help you to see which life insurance is best for you.
What is the insured sum?
It is the maximum capital that life insurance companies will pay for each incident that occurs and is covered by the conditions of the policy.
Who can be beneficiaries of life insurance?
In life and disability insurance , the beneficiary is the same insured if he becomes invalid, while in the case of death the beneficiary can be any person, and with preferential rights over those of an inheritance, unless they are revoked in will. The change of beneficiaries can be done at any time, and as many times as desired.
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Know the main types of life insurance by age
As people begin to encounter family and economic burdens, generally starting in their thirties, they begin to be aware of the need to protect what really matters, and that is when they think about how to choose life insurance.
Under normal conditions if there are no risk factors for the type of profession, dangerous sports activities, health problems, or other issues that can be considered as aggravating by life insurance companies, the younger the person the less premium will pay for his life insurance, since in principle it is understood that he does not suffer the same natural deterioration as an older person.
Life insurance risk
Normally, insurers design a greater amount of life and disability insurance thinking of people between 30 and 65 years of age, which does not exclude that those who are older or younger can have other types of insurance.
Between the ages of 30 and 50/55, the most common is to take out annual renewable temporary life insurance, in which a fixed capital is usually maintained, while the premium varies growing somewhat every year.
But you can also hire decreasing capital with constant premiums, to adjust for example life insurance to the payment of a mortgage, as it is amortized, while the insured increases in age, without incurring a higher expense each year.
Life insurance savings
They are designed for those who show a lot of risk aversion and do not know how to choose life insurance, combining the accumulation of a certain savings that the insured can charge in case of survival as a complement to their retirement if when they reach a certain age it has not occurred the death, with a death or disability coverage in which case the beneficiaries would charge.
The insurance Death are designed for all ages, ensuring capital to attend funeral services, insurance and addressing all those procedures that are so difficult for the family when you just lost a loved one.