The concern for the future of the family in the event that one day we are surprised by death is shared by many people, especially when the economy of that home depends on the deceased. And having a policy that guarantees sufficient insured capital gives us peace of mind.
Life insurance is considered essential to keep the family protected, mainly in those cases in which the family depends economically on the income of the person who hires it. The main purpose of life insurance is to protect children and / or spouse and reduce the economic impact that occurs with the death of the policyholder.
What is an insurance of life and why do you need life insurance for family? The answer to those questions is the basis for this article.
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What is a insurance of life?
A Life Insurance is, basically, a policy that protects those we love most against a claim that involves the death of the insured or generates a situation of disability that prevents them from continuing their professional activity.
A life insurance covers the insured in the event of death, in the event of a serious accident that may cause disability or in the diagnosis of a serious illness.
Here are some of the advantages of having life insurance:
Financial security for your family
Life insurance for your family is a good way to ensure the future of your family. If we live with people dependent on us, taking out life insurance mean guaranteeing their safety and well-being in the event that we are absent.
Protection in case of disability or illness
Life insurance not only protects the family nucleus, but also protects the policyholder. The capital can be used to cover the expenses necessary to face any of the circumstances contemplated in the policy and that we have suffered.
Free of debts and taxes
The capital received by the beneficiaries in the event of the death of the insured is free from liens. This means that, even if the debts that the deceased had when receiving the inheritance are rejected, the life insurance compensation is received in full.
The capital that the family members charge for the death of the insured is not subject to Inheritance and Gift Tax (ISD), nor to personal income tax.
Financial security against debts
Life insurance for family is a guarantee when it comes to ending outstanding debts. With the most common case being the mortgage payment. It is possible that after one’s death or inability to continue working he still have not finished paying off all his debts. In this case the most common being a pending mortgage.
Continuing to receive income from the insurer will allow our family members to allocate the money to these types of payments and forget about them permanently. In this way, they will be able to allocate their own salaries in full to the well-being of the family, without the possibility that payments such as the mortgage end up suffocating them.
Life Insurance for family adapt to your needs
Finally, another advantage of life insurance is the possibility of modification of the policy over time. In this way, you can adapt the insurance to the situations that develop, either by modifying its coverage or the list of beneficiaries. Thanks to the different types of policies that exist on the market, the insured can choose the payment method that suits him best (monthly, quarterly, semi-annual or annual).
The Bottom Line is: It is very important to get a life insurance for your family. It is also important that the life insurance you get, fits your lifestyle, family, needs and budget, since its coverage can make a difference in your future.