Every time we live more to the day, we avoid thinking what can happen tomorrow. And let’s not talk about the usual vitality of young people. But everything looks different when a family is formed. On the shoulders of the father and the mother falls the responsibility to protect their own of what may happen. The biggest fear is that both our spouse and children do not have the means to take care of the burial expenses, the mortgage on the home, the school or university expenses of the children or, simply, the expenses of the day to day to live . Here you have what you need to take into account to contract your life insurance.
1. Choose which coverage interests you
When you are going to buy life insurance you should choose between these types of coverage:
Death: It is the basic coverage of life insurance. If the insured dies of illness or accident, the company will pay compensation, whatever the cause.
Disability: Faced with a total and permanent disability that incapacitates the insured from his or her regular work, the company will pay compensation. This modality is optional, although it is usually taken into account together with the death.
Dependency: The Company pays compensation in case the insured is in a situation of dependency, that is, that cannot stand on its own and depends on another person to perform the most elementary acts daily; from dressing, cleaning, moving, etc. This modality is optional.
Serious illnesses: When hiring life insurance this option is also optional. If you contract, you guarantee that the insured will receive compensation if they diagnose a serious illness that is indicated in the contract of the policy. The most common are cancer, myocardial infarction, cerebrovascular accident, renal failure, etc.
Get Paid For Your Opinions Today!
2. Name the beneficiary in case of death
The insured names one or several beneficiaries so that in the event of death they can collect the indemnity from the insurance company. They must claim it from the company in question, and if they doubt the existence of the insurance they can access the public directory of Insurance Contracts with Coverage of Deaths.
In the case of not including a beneficiary, these will be his legal heirs; that is, your spouse, your children equally, your parents, etc. Always in descent order.
Once you know what kind of life insurance you want or need, it is time to define the capital to be insured.
3. Calculate the capital to be insured
Let’s talk about the capital to be insured or, what is the same, the compensation to be received. Calculating the capital that would cover the needs of your family is not an easy task. Three aspects are taken into account:
a. The number and ages of children or dependent minors.
b. The needs of our family (mortgages, general expenses and education).
c. The money needed to survive until the new financial situation is resolved.
Based on these data and with the help of your trusted advisors you can establish the amount of the capital to be insured.
4. The medical examination
Depending on your age or the capital to be insured, the company will have you answer a health questionnaire or it may require a more complete medical review. We advise you to answer all the questions that you ask with sincerity and declare the pre-existing diseases. Beware because if you lie, the insurer may refuse to pay the corresponding compensation at the time of death. On the other hand, if the company asks for the review, it is she who will have to pay the medical expenses of the control.
This insurance does not necessarily have to be for life. Check your needs every so often. When you have paid the mortgage you will have to regularize the life insurance. Also, if your income changes or your children become independent from home, it will be necessary to update your life insurance. This will reduce the insured capital and consequently the cost of the premium in the next payments. And do not forget to look at what insurances they deduct in the Income because currently the life insurance maintains a reduced rate of reduction.