How to choose the best life insurance and use it correctly?

 


Life insurance is an indemnity that you can receive in life or be paid to your beneficiaries in case of death. It serves as a financial support when an unforeseen event occurs, leading to loss of income and the emergence of extra expenses.

That way, we can say that life insurance should be part of your financial organization . You can choose coverage, for example, that indemnifies you in case of accidents that prevent you from working for a while .

In a situation where you miss school, you can have protection that pays your children an amount until they complete school life.

There are different types of coverage and occasions when this financial support will be needed. When hiring the best life insurance for you, the company will assess your lifestyle, risk factors, what protections you would like to have , how the amount will be paid and how much you want to have in compensation.

So that you and your family are not left unattended, information is the first step, so that you know exactly your needs and what you are hiring.

What does life insurance cover?

To choose the best life insurance, it's important to know what coverage you need.

Traditionally, life insurance serves to indemnify one or more beneficiaries in case of natural or accidental death of the holder. It can also serve to cover the costs of funeral assistance in the event of the death of the insured person.

In addition to mandatory coverage, life insurance allows you to enjoy protection while still alive . Below we list what they are:

Temporary disability

The Daily Permit for Temporary Disability (DIT) is an amount paid during a period if you are unable to work and generate income due to an eventuality.

This coverage is more sought after by those who are self-employed or self-employed and have a loss of income every day they are not working. The contract should make certain points clear, such as:

- In which situation the insurance can be triggered (accident and illness);

- What is the amount to be paid per day;

- How long you can receive.

Serious diseases

If you discover a serious illness, the costs for treatment can be very high. If you have this coverage in your insurance, it can be triggered after the diagnosis is made.

Severe illness protection is usually offered on an additional basis. It can be important for anyone who has a history of serious illness in their family. When choosing the best life insurance, consider the following points :

- Find out about which diseases are covered (types of cancer, stroke, heart attack, Alzheimer's, etc.)

- See if there is coverage for pre-existing illnesses;

- What is the maximum age limit for having this protection. It is not usually offered when the insured person turns 70.

Invalidity

Disability coverage in situations of accident or illness that make the insured person limited to work or live independently. This protection covers three main points:

- Total or Partial Permanent Disability due to Accident , which is the total or partial loss of a limb or body organ due to an accident, without, however, impeding the covered individual from working and making a living;

- Total Permanent Labor Disability due to Illness , which indemnifies the insured person if he has an illness for which the treatment is not enough for him to keep his main job;

- Total Permanent Functional Disability due to Illness , in case the insured person is no longer able to live independently due to an illness.

In addition to the three coverages above, there are other options that can make up the best life insurance for you, such as per diem per hospital stay, medical, hospital and dental expenses . Funeral aid or assistance is also protection that can be contracted together.

What types of life insurance exist?

Check the types of assistance and choose the best life insurance for you and your family.

It is possible to create protection that will help you and your family live more peacefully. To find the best life insurance, it's important to know which model best fits your needs. Check the types of protection:

individual life insurance

It is for those who sign the contract directly with the company offering the insurance, with coverage that pays compensation in case of illness, disability or death.

family life insurance

The relationship also happens between client and insurer. The only difference is that the insured is not just the person who hires, but the family members he includes. If something happens to one of the family members, there will be compensation.

collective life insurance

It's the kind of cover companies make for their employees. In this case, the contract is made between the employer and the insurer. Protection has standard coverage, as does indemnity.

Even if the employee has a collective life insurance linked to work, this does not prevent him from contracting another one. In that case, it is worth studying the best life insurance to complement the existing one.

redeemable life insurance

It is the insurance that allows you to redeem a part of the value after paying for it during a period. Once you receive the resources, the protection ends.

By having the option to redeem part of the money you have already paid, this coverage may have a higher cost. In addition, there is a grace period of two years to receive the money.

life insurance

It is also called comprehensive life insurance and has no age adjustment over the years. In this protection, you pay for it during a pre-defined time and then you have the coverage you have contracted for life.

It is indicated for those who want peace of mind over the years, knowing that they are protected without having to pay for the same period of time. In any case, it is worth checking in the contract if there is a maximum period of guaranteed protection.

term life insurance

Protection is paid for a specific time. He is indicated for those who want to guarantee financial support to dependents and heirs in case of death.

The cost of this insurance will depend on the total amount you want to leave and how long it will be paid.

What is the best life insurance for you?

The best life insurance is the one that perfectly suits your needs.

To make sure you are choosing the best life insurance, here are some points to take into account:

- Objectives: What is the main objective when taking out life insurance? Is it just for you or for the whole family ? Evaluate how your family would be financially if you were to be out of work for a period or if you were absent.

- Insurance: From your objectives, assess what type of insurance you intend to take out, how you want to receive it in life or pay beneficiaries and what is the amount of compensation.

- Coverage: Evaluate in which situations, in addition to mandatory coverage for death, you would like to have protection, such as an accident, illness, etc.

- Choice: The search for the best life insurance can be done directly between financial institutions and insurance companies. It is also possible to consult a broker specializing in this area. Here, it is important to take into account the credibility of the company and that the insurance meets your needs.

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