One of the decisions that, sooner or later, we have to face is to take out an life Insurance that covers our own death. Many people wonder if it pays to sign up for a Life policy or is it just another expense. Are there sufficient reasons to assume that expense every month? Do we really need it? Well, it is a decision that is in your hands, although today we are going to give you 12 good reasons to get Life Insurance.
Why take out a Life policy?
The most important reason for contracting a Life Insurance policy is the economic maintenance of the family. As we have already pointed out, when one of the people who provides income to the household dies, it is necessary to compensate that loss. And the compensation of Life Insurance can be a fundamental support to overcome this situation.
Although, taking into account the number of cases and situations that can surround this decision, as well as the guarantees and coverage that can be included in this type of Insurance, there are other good reasons to take out Life Insurance:
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Protect the family after death
Offering compensation for the death of the insured is the basic coverage of Life Risk Insurance. These policies have, as their main purpose, to reduce the economic impact that occurs among the people close to the insured, after his death. Therefore, this policy is essential in households that depend economically on the insured.
It is the policyholder who chooses the beneficiaries, who are the people who, in the event of their death, will receive compensation or an income, previously set. Here we tell you what happens when the policy does not include any beneficiary.
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Take out Insurance to pay off the mortgage
What does mortgage life insurance cover? An important reason for subscribing to Insurance is the possibility of canceling the mortgage in the event of death. A mortgage loan is a significant drag on the income of any family that is still paying for their house. The death of one of the members of the family unit can destabilize your economy and jeopardize home ownership.
Currently, 6 out of 10 people who own a home are paying mortgages. Life Insurance can cancel the loan with the insured capital and free the family from bank obligations, thus ensuring ownership of the family home.
In fact, many banks offer their customers better loan conditions if they link it to insurance or other financial products. However, subscribing to this type of policy when contracting a mortgage is not mandatory and, in addition, it is possible to find cheaper offers outside bank branches.
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Cover the risk of disability
One of the things to think about when taking out Life Insurance is to include disability coverage among its guarantees. Experiencing an aggregate or super durable inability can completely change anyone. Besides the fact that it brings the incident of being block, yet a circumstance unavoidably hauls love ones.
Without the chance of working and, now and again, compelled to bear costly medicines and costs, handicap can produce troublesome financial circumstances in the family. Given this perspective, a good Life Insurance can offer alternatives such as the advance of the insured capital to meet these expenses. If you are interest in the subject, you can find out more about disability coverage in Life policies in this post.
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Critical Illness Coverage
The possibility of suffering a serious illness that alters our life and that of our family is another reason to insure ourselves. Coverage may be included that covers situations in which a serious illness prevents us from carrying out our work.
This Insurance compensation allows you to maintain a certain quality of life and assume the costs that this new situation implies, such as home adaptation reforms, medical costs, home care if necessary…
In addition, in the Life Insurance offer we can find coverage that includes health care in certain serious illnesses, as well as medical tests and specific treatments. To learn more about this coverage, here is more information about the Serious Illness Insurance and how it works.
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Cover the most urgent expenses after death
Death does not usually warn and, when a person leaves us, many of their debts surface and it is the family that has to face them. We are talking about outstanding personal loans, account charges or credit cards or expenses related to the death itself. That person may not have Funeral Insurance and, in the midst of mourning, the family finds it necessary to face an expensive funeral.
All these urgent expenses can be cover with a good Life Insurance, including coverage for burial or cremation expenses. In any case, the insured capital can help to face all these unexpected expenses.
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Pay the Inheritance Tax
Depending on the autonomous community of residence, after the death of a person, the law requires a more or less burdensome Inheritance Tax to be pay in order to enjoy the inheritance. Many people are force to give it up due to the high cost of Inheritance Tax, especially when there are real estate include in this inheritance.
If we live in regions where Inheritance is paid a lot, having Insurance is a smart decision. The money from the Life Insurance compensation can be use to pay the Inheritance Tax, thus preserving the family properties.
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Ensure the future of children
The future of our children worries us and, in fact, being parents usually leads many people to consider hiring Insurance. And Life policies offer various solutions to guarantee their economic independence and maintain the level of education that their parents have been able to give them.
For example, many Life Insurances can include in their conditions a clause that guarantees the continuity of the studies of the children of the insured, in the event that he dies. In this way, parents ensure that minors will not have to leave the center in which they are enrolled, due to the impossibility of meeting the fees. In any case, the compensation of the Life Risk Insurance may be enough to cover the expenses of the children. Of course, it is important not to make mistakes when calculating the capital that we insure in the policy, so that enough money arrives for these and other expenses. Here are some tips on how to calculate the insured capital in Life Insurance.
On the other hand, there is Savings Insurance that also allow specific amounts to be amortized periodically to pay for the children’s university studies, even if the parents live. In this sense, a Savings Life Insurance is an interesting tool to gather the necessary capital without risks.
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The risk of traffic accident
In 2017 alone, 1,200 people lost their lives on Spanish roads. Traffic accidents are one of the main causes of death and disability, and Life Insurance also makes it possible to specifically prevent this risk with personal accident life insurance.
Natural death is the case covered by all insurers in their life policies, although it is possible that the insurance includes additional compensation in the event of death in a traffic accident. In addition, it is also possible to insure additional capital in case death occurs in any type of accident.
