When you-have a family, and you are an essential part of the main generator of income in the home, it is expected that you want to give economic security to your closest circle and thus be able to help them when you are no longer with them.
In this sense, the benefits of taking-out Life Insurance are very varied and allow you to protect your loved ones in case you die.
But do you know what Life-Insurance is? Next, you will learn more about this type of policy and the advantages of having the protection-provided by the best insurance companies in Chile.
Clearing doubts: what is Life Insurance?
Life Insurance is a financial instrument that an insurance contract compensates the beneficiaries if the insured dies.
This-indemnity is a sum of money known as “insured-capital” and can be paid-at once or in installments, as stipulated in the contract-signed with the Company.
Agreeing with an insurer requires both parties to know the conditions of Life Insurance very well.
Thus, your task will be to complete at the time of the application or contracting of the insurance all the required information and, for its part, the contract-will inform you of critical factors, such as:
- The beginning and end of the coverage.
- The conditions to renew the policy.
- The insured capital.
- Other additional clauses need to be explained.
Always pay attention to these-points before closing the deal with the insurer, and once you decide, enjoy the benefits of hiring a Life Insurance with excellent coverage.
Advantages of purchasing Life Insurance
Next, you will know the main advantages offered by Life Insurance Companies:
Economic security for the family in case of accidents or deaths
The death of the head of the household is a problem that needs to be considered now.
Even if both parents work, not receive income, even if it is only from one of the parties, it cannot be easy to maintain the usual lifestyle.
Therefore, Life Insurance gives you financial security and allows you to cover your family’s needs, even if they can no longer count on you.
Payment of debts
If there are debts at the time of death, the funds the beneficiary receives can be used to cover outstanding debts.
This would prevent your loved ones from taking care of that situation, which can put them in trouble if they do not have the necessary resources.
Contribution for retirement or disability
Depending on the Insurance Company, some additional policies or coverages protect you against events such as permanent or partial accidental disability.
On the other hand, other insurances include savings that could be used to supplement your retirement.
Anyway, in both cases, you can take advantage of the primary coverage to protect the financial stability of your loved ones in complex situations that require having a plan B.
Pay the costs of funeral services of the insured
Expenses related to funeral ceremonies are usually relatively high, which is especially difficult for families to face when the person who generates the most income dies.
One of the possibilities to deal with this situation is to use part of the insurance funds to cover these purposes.
As you can see, hiring Life Insurance is highly recommended since it protects those you love the most. If you want to have excellent coverage, know the two alternatives offered by Penta Vida:
1. Limit Protection (Life Insurance): allows you to leave an amount of money to whoever you decide in case of death.
2. Savings and Free Protection (Life Insurance with Savings): allows you to leave an amount of money to whoever you decide in case of death and also allocate money for savings in the medium or long term. The objective is complementing your future pension to use it for any juncture.