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Why Buy Life Insurance? 4 Reasons Why You Need It
Release Date:
2017-12-06
Description:
 
Not leaving the family unprotected in case of death is the main reason that leads a person to buy a life insurance policy.   Having or not having life insurance is the question that many people struggle with. Is it worth it to have this insurance or is it just one more expense? Paying for a life policy is not mandatory but it is recommended, especially when you have the house mortgaged, if you have children studying at university or if you want to "shield" the family if tomorrow the insured dies. But you can also obtain insurance in order to receive future profits.   These are just some of the reasons that lead people to take out insurance and protection policies.   What does life insurance cover? Life insurance can be obtained in two different modes: whole life or term. The main difference between them is that while the first one is activated when the insured dies, the second one does so when it reaches its expiration. In case you want to have the advantages of the two modes you can choose to subscribe to a policy combining the two elements.
  1. After Death
Protect the family after death: covering the death of the insured is the basic coverage of life insurance. The purpose is to protect their children and / or spouse and reduce the economic impact that occurs with the death of the policyholder.   Life insurance is essential in cases in which the insured's family depends economically on their income. In this way, the beneficiaries will receive compensation or an income, previously fixed, in order to compensate the lack or reduction of income and cushion the economic impact.  
  1. Protect your mortgage
On many occasions, banks offer their clients better loan conditions if they link it to life insurance and / or other financial products. Opting for this type of policy when taking a mortgage is not mandatory but it is one of the reasons why many people have it.   Many people choose to take out a life policy so that if they die and have not yet settled the last installment of the mortgage, the insurance will be responsible for the payments and the family will be freed from this burden.  
  1. Guarantee the studies of your children
Although there are study insurance policies on the market as such, many life policies may include a clause in their condition that guarantees the continuity of the studies of the insured's children in the event that the latter dies. In this way, parents ensure that their children will not be forced to leave the institution where they are enrolled due to financial difficulties in meeting the payments.  
  1. During life
Although the basic guarantee of life insurance is to cover the natural death of a person, it can also be supplemented with additional coverage. Users can include in their policy other coverage that protect them in case of disability, absolute or permanent, or if they suffer a serious illness.  
  • Disability: disability coverage is one of the most common options which many people choose. In many cases, the affected person is unable to continue working in their professional activity. In such instances, it is life insurance that facilitates a regular income during the period of time that the coverage lasts.
  • Serious illness: another possibility offered by life insurance is to cover the insured if they fall seriously ill. If diagnosed with cancer, kidney failure, myocardial infarction or coronary artery disease, among others, the insured can request a capital advance to help meet immediate financial requirements.
  Life insurance, a lifesaver Life insurance acts as a lifeline for many families. Having an adequate protection policy is almost indispensable in cases where a household depends exclusively on the income of only one of its members.
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