What is the best life insurance?
Many are worried about the economic problems that their death or disability could cause to their family. Life insurance acts as a guard against the debts that the deceased can leave behind, or against the income that will stop providing them. Thus to the death or disability of the loved one, the insurer undertakes to deliver to the beneficiaries a sum of money agreed upon. In return, the policyholder is obliged to pay a periodic premium.
Therefore, it is essential to know our needs (it is not the same to have relatives under our care or a mortgage, not to have them) so that through good advice, we can know which is the best life insurance by optimally adjusting to our needs. In general, if life insurance is contracted to cover the family, it is recommended to set the minimum amount at five times the annual net income.
Who is who in life insurance?
Insurer: Company that in exchange for a premium is obliged to indemnify the beneficiary in the event of the death of the insured.
Policyholder: Person who hires the policy and assumes the payment of the premium.
Insured: Person who covers their risks by the policy.
Beneficiary: Person who will be compensated if the insured dies.
What is the premium ?: Amount that the policyholder pays to the insurer for assuming the risk of the death of the insured.
What is the best life insurance? The best life insurance will be the one that best suits our needs. If we have a mortgage, it can be very interesting to buy life insurance with decreasing capital, while if it is for family protection we will have to opt for a constant capital, or revalueable. It is good to also value:
What extra coverages does the policy have? Does it include an advance for funeral expenses or tax settlement, an online testament, double or triple capital, or does it reward the insured person’s physical exercise?
Is the insurer with whom we are going to contract the policy solvent and known?
Does the insurer inform us of what we are going to pay in the next few years or is this information given?
Do we have the service of a specialized mediator that provides independent advice and deals with the modifications and possible claims?