Living in the present without worries is compatible with thinking about the future. If you are the person responsible for most of the income in the household economy, one of your concerns may be to cover your spouse and children when you are gone. One way to guarantee the future of your loved ones in case of misfortune or accident is to take out life insurance, a decision that you have to reason to make it the right one.
Comparing prices between companies will be your first impulse when opting for life insurance, but the truth is that the amount will vary according to the coverage and exclusions agreed, as well as the risk of the insured capital. Before subscribing your policy, it is recommended that you ask for advice from a professional and that, without acquiring any kind of commitment, ask for several quotes from the companies that provide this type of service.
There are a number of factors that companies rely on when purchasing life insurance. The age of the policyholder and his state of health are the most determining factors. The range that goes from 30 to 50 years is the most suitable to subscribe this type of policy, since at this moment you will have a relevant patrimony and family responsibilities to fulfill. The insurers also reserve the right to verify that your physical condition is optimal by carrying out medical tests and questionnaires about your state of health and your lifestyle. In the event that you suffer from chronic or serious ailments, or your age is considered a risk factor, the company could increase the final price of the insurance or even revoke the policy if it detects fraudulent motivation.
Another important concept will be the insured capital. If, for example, you have a mortgage, in the event of death the insurance should cover the pending payments. To exempt your children from debt, it is advisable to increase the risk capital of your life insurance so that it covers the net salary of five years. When comparing insurance, it requires that the coverage, limitations and forms of compensation be specified in its clauses. Also keep in mind that there are two types of policies: term insurance, which expires in a certain period, but there is the option of renewing it; and the permanent one, which does not expire and you can see it as a way of saving.
Life insurance covers the death of the policyholder, whether it occurs from natural causes or as a result of an illness or accident. The clauses will determine the cases that comprise the coverage, as well as the amount that the beneficiaries will charge in each case. It would be interesting to negotiate an amount of double or triple the insured capital if the policyholder dies in a domestic or traffic accident, or a higher compensation in case of natural death. Burial, will and inheritance expenses, typical of death insurance, will also be fully or partially covered with this type of policy.
The companies will offer you insurance with additional benefits, which cover the risk of suffering serious illnesses or suffering a temporary or permanent disability, in the personal or work environment. Also, among the conditions of the contract will include the exceptions that give rise to coverage. The most common are the death caused with intent by one of the beneficiaries -those not involved would maintain their right to collection- or the criminal acts of the insured if, for example, he died in a traffic accident and exceeded the blood alcohol level. Neither do they cover illnesses and accidents prior to signing the insurance nor suicides within a year after contracting.
