What are the most important aspects to take into consideration?
Life insurance is a policy that guarantees the beneficiaries a lump sum in the event of the insured’s death. It is a form of prevention that offers economic support to a family unit if the main source of income fails.
Specifically, the life policy consists of a contract that is stipulated between a private individual and an insurance company, in which all the information necessary for the activation and completion of the insurance coverage is specified:
- details of the policyholder, the insured, and the beneficiary;
- the type of coverage;
- the capital you want to insure;
- the methods of payment and the amount of the premium;
- the duration of the policy.
The characteristics of life insurance policies
The insurance market presents different models of life policies, which are characterized above all by the coverage they can offer.
A widespread solution, due to the advantages it offers in the face of a relative economic commitment, is the temporary case of death, a solution that covers the so-called risk of death. Specifically, this policy provides for the payment of the capital by the insurance to the beneficiary in the event of the premature death of the insured within a time limit determined in the contractual phase.
The companies also offer a series of complementary guarantees to be integrated into the basic prevention formula :
- Accident Guarantee
- Serious Illness Guarantee
- Disability Guarantee
Who Needs Life Insurance?
An insurance tool such as temporary death is recommended for those people who need to protect their loved ones.
For this reason, life insurance that covers the risk of death is mainly suitable for families with dependent children or elderly parents or who have taken out a mortgage for the purchase of the house.
Life insurance for a family with children
Protecting loved ones from a negative event can prove to be a necessary choice for those families who can only count on a source of income or who, despite having more incoming incomes, must provide for the economic support of small children or elderly parents.
In these situations, ensuring the head of the family or both spouses with a temporary Colonial Penn life insurance policy in the event of death could prove to be a prudent choice that, in the event of the premature death of the insured, can provide loved ones with economic protection.
Temporary case of death for those who have taken out a mortgage
Life insurance is particularly suitable for people who have contracted a large debt to be resolved over a very long period of time.
For example, for a family that has taken out a mortgage for the purchase of a house, the ideal cover is the temporary case of death, where the capital to be insured and the duration of the contract are calculated on the basis of the sum to be returned to the credit institution.
Other categories that can benefit from a TCM
Employees
In many cases, employees already have a life insurance policy agreed with their employer. Often, however, it is insurance included in the company benefits that does not guarantee high capital, since generally, we speak of sums equal to double or triple the salary received.
In addition to not representing adequate financial support, these agreed insurance policies do not follow the worker in case he changes employment.
For these reasons, it is advisable to consider an alternative solution and opt for additional life insurance that offers greater annuities and guarantees.
Housewives
Protecting yourself with life insurance is always a good idea; it’s easy and cheap.
It is often not considered that if a family member who carries out a series of unpaid but fundamental jobs for the growth of the family should pass away, it could be burdensome to have to constantly rely on external help to take care of the children, ensure the cleanliness of the house and manage daily domestic life.
Ensuring both adults in a family unit is certainly the safest choice, regardless of the economic contribution made by each.
Who has had any health problems?
Insurance companies present their customers with life insurance offers whose price is based on many factors such as age, sex, the current state of health, and any clinical, physiological, and pathological history.
Unfortunately, in some cases, even with a full recovery, previous health problems can lead to the inability to access insurance coverage.
In general, however, being subject to possible diseases does not prevent the consumer from discovering how little the protection he needs can cost and asking for a specific evaluation.
