Have you ever thought about the importance of life insurance? Above all, it is a good product to invest your money in, both for the peace of mind it offers and for the support it represents, especially for your family, in the event of an 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.
Both even the insured person are covered by the insurance when an occurrence prevents him from carrying out his productive activities. Thus, whether they are beneficiaries or the person who took out the insurance, compensation will be paid in the event of a loss.
This way, the insurer guarantees compensation protection to the insured, who, in turn, pays an amount called the insurance premium to the insurer. All of this is encapsulated within an insurance policy -a document that contains a summary of the main stipulations, including coverage, the 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.
In this manner, whether there may be a death or a disability which incapacitates the person, the insured and beneficiaries will not be left with their backs against the wall. The amount of compensation payable, i.e. the insured capital, is determined by the interested party in the contracting process and also how one can make monthly instalment payments.
Remember that you, as an insured, are investing a specific amount of capital in life insurance in order to gain the peace of mind that you require and protection and support in case something happens. These are the expected outcomes for purchasing life insurance.
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.