When it comes to choosing life insurance, the best one will always be the one that perfectly suits your needs. The main reason someone is interested in buying life insurance is to protect the family in the event of death. It is also usually bought to prevent family members from being left with large financial burdens such as debts or paying for the education of their children. But then how do you know which one is the best?
For that, we are going to explain some concepts to understand what you are buying:
Life insurance policy: It is a document that includes all the data of the contracted plan, coverage and details. Everything that the insured agreed with the insurer or its broker.
Coverage or guarantees: These are known as the risks to which the insured is exposed and that the insurer covers. It can include anything from permanent disability to death.
Insured capital: It is understood as the amount of money that is going to be insured and that will become the compensation of the beneficiary, who will receive the amount after the death of the insured.
Life insurance premium: This is the price paid for this insurance. This can be paid monthly, semi-annually, annually, it depends on how the insured wants to pay it.
Now that you know the basic terms, you can think about your needs and analyze your situation by answering the following questions: Does my family depend solely on my income? How many people are under my responsibility? The best insurance is the one that will give you peace of mind that your family is fine when you are not there to protect them. When you are choosing the product for you, make sure you do not go for the first one on the market, with the help of a broker or advisor, evaluate your possibilities. The amount of capital that you insure must go hand in hand with the years that your family needs financial assistance when you are gone.
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