Many people wonder whether to take out life insurance to protect their family in the event that the insured dies. Although having a Life policy is not mandatory, it is highly recommended, especially if we have children or dependents and we are the source of income for our home. Here we tell you everything you need to know about these insurances, the types of policies that exist, etc. Also, remember that, with Acierto.com, the market’s leading independent comparator, you will be able to compare between the main companies in the Spanish market in order to find the insurance that best suits your needs for the lowest possible price.
Spaniards are afraid of taking out life insurance
One of the main reasons that moves Spaniards to take out life insurance or life savings is the uncertainty of tomorrow’s pensions. According to a AIG study, 95% of Spaniards feel concerned about their retirement.However, there is still reluctance to contract this type of product. It is due, above all, to a lack of knowledge, remoteness, mistrust and a culture of denial of risk.
So much so that, according to AIG, 78% of Spaniards consider life insurance to be very complex . They believe that these policies have too many clauses and small print, which causes 53% to feel distrust towards insurers .
Likewise, 63% of those surveyed do not understand the benefits of taking out life insurance or life savings, while 55% indicate that the price influences their decision not to take out this type of product.
Types of Life insurance that exist
Insurers mainly offer two types of policies:
Life risk
In these insurances, the premium is usually annual and this is calculated according to the age of the insured and the capital chosen or insured in the policy. The older the customer and the more capital, the higher the cost. In this case, the beneficiary will receive the stipulated capital at the time the policyholder dies, that is, its objective is to protect the beneficiary in the event that the policyholder is gone. Now, if the contract expires, the insurer will no longer give any type of compensation even if the policyholder dies.
Let’s take an example: María contracts a life insurance in which it is indicated that the contract ends at 65 years of age. If María reaches that age and subsequently dies, the insurer will not compensate her with anything.
Life saving
These policies are those that lead to the payment of a certain amount to the insured when a certain date arrives if he is still alive. That is, if the client survives to a certain age previously established in the contract.
This saved capital is constituted based on annual or monthly contributions during the years that the insurance is in force. There is also the possibility of delivering a single payment in order to receive a profitability set in the contract when the policy comes to an end.
What life insurance is right for me?
First of all is to know why you need a life policy. The reasons are usually very different: protect your family from possible debts and loans, ensure the future of your children in the event you die, obtain a significant amount of money once we reach an age when we cannot work (at pension plan mode), etc.
Life Risk
These insurances are the policies for cases of death. As we have seen previously, the objective of this product is to protect the beneficiaries in the event that the policyholder dies.
This type of insurance is also a very good option for those who have the house mortgaged so that, in the event that they die, their family does not have to take care of the debt. In fact, many banks contractually oblige the mortgaged to subscribe this type of policy as a sine qua non condition to grant the loan.
It is also common for people with risk professions to have this type of insurance, although not all insurers allow this type of clients to take out a life policy, since the risk of death is much higher, and those that do allow it, they do it with much higher premiums. In addition, there are jobs that are not consider risky as such, but that can also be subject to a premium increase, such as those that require spending a lot of time behind the wheel (such as truck drivers) since they are more likely to suffer an accident.
To know the exact conditions of these insurances, the ideal thing is to consult it directly with the company in question or to compare the coverage of the different policies in AIG . And if you have doubts of any kind, our specialized consultants will solve them without any commitment.
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Life Savings
Life Savings insurance is design for the enjoyment of the policyholder himself (since this is usually the same as the beneficiary) in the event that he survives a series of years specified in the contract.
This type of policy allows us to get an extra return on our savings. It is not a product design specifically for this, but it has a great advantage as a tax exemption, since you will not have to pay taxes on the income that you are obtaining until the moment you collect them (then you will have to). These savings will really come in handy tomorrow as a complement to retirement or your private pension plan .
Mixed
And in addition to these two options, you can also opt for Mixed Life insurance, which protects your beneficiaries in case you die, but also pays you an amount set by the contract in case you reach a certain age without dying.
Despite the fact that life insurance for parents is not mandatory, more and more people are choosing to take out this type of policy to cover the backs of their loved ones or to obtain an extra peace of mind tomorrow. With AIG you can compare the best insurers in USA to find the insurance that best suits your needs for the lowest possible price.