Do you ever think of how important life insurance is? Above all, it is an important product in which to invest money-dignified both with regard to peace of mind and as a source of support, especially for family members-by an early and unexpected death.
It is not an investment to receive interest after some time. However, what insurance offers is of indispensable importance for anyone and, especially, for those who have loved ones who could be left helpless.
Want to know more? Continue reading and understand why life insurance is an important initiative.
What is life insurance?
Life insurance is, above all, a preventative instrument aimed at protecting people. In this sense, it can offer the necessary peace of mind to those who have loved ones and would like to guarantee them the necessary support in the event of their unexpected absence.
Even the insured party, in this case, by an occurrence disabling him from continued productive activities will be covered, so whether he is a nominated beneficiary or himself the party taking out the cover, compensation would be paid following a loss.
For this purpose, the insured pays an amount called the insurance premium to the insurer in exchange for the guarantee of protection against compensation. The whole contract is brought together in an insurance policy , a document that summarizes the principal provisions, among others, which include coverage, insured capital, and validity, among others.
Consider that in insurance, the premium is the amount you pay monthly to the insurer, while the loss is an occurrence for which there is insurance coverage. In turn, coverage is the situations provided for in the contract and that will be covered if they occur, giving rise to compensation.
Similarly, the insured capital is the amount that you or your designated beneficiaries will receive if there is a claim. This is the basic terminology used in insurance in general.
Why consider life insurance as an important initiative?
The nature of life insurance means that it is a product that can provide financial stability if you experience an unexpected situation. For example, if you have an unexpected death, your family will have financial support to deal with the reality of your absence.
This way, no matter whether through a fatality or a debilitating disease, the insured and their beneficiaries will be not left uncovered. The compensation to be paid in terms, i.e., the insured capital is defined during the contracting process by the interested party, together with the best means of monthly payment.
But at the same time, remember you, as a policyholder invest a certain portion of capital with life insurance from which you earn peace of mind, protection as well as all the support possible for unexpected times. These subsequently form the expectancy for buying the life insurance itself.
Consider, for example, a hypothetical situation in which you have taken out insurance for R$200,000 and would invest around R$150.00 per month. Suppose that 6 months after taking out the insurance, a drastic and unexpected event permanently separates you from your family.
Continuing with the example, you invested R$900.00, but your family will receive the R$200,000 you agreed to. There is no financial product capable of offering a return that compares to this. On the other hand, you may not be struck by a fatality any time soon, but the peace of mind resulting from insurance will always be there.
Although in the strict sense, the money invested in life insurance is not invested to earn interest and be redeemed on a set date. However, you can easily think of purchasing this insurance as an essential initiative to protect your beneficiaries.
In any case, as noted above, life insurance is a preventive instrument, considering the real possibility that affects anyone: an event that causes a sudden departure. Likewise, if there is an incident that prevents you from continuing your productive activities.
How to take out life insurance?
Every insurance policy of any kind ( car insurance , home insurance , life insurance) must consider one irreplaceable premise: the partnership of an experienced insurance broker . Your broker is prepared to bring you the best options on the market so that you can make your choice with confidence.
In any case, there are precautions you can take. For example, you should evaluate the insurance company you are going to hire and observe, among other things, aspects such as:
- the experience you have built;
- how it is seen by the market;
- the service history;
- the coverage offered.
In addition to protection for death and disability, which are the core of life insurance, there are other types of coverage, as well as assistance and different services. You should evaluate which situations apply to your reality and try to limit yourself to these when choosing your life insurance coverage.