The Key To Choose Health Life Insurance
2021-05-25 | by CusiGO
Life insurance is an economic guarantee to protect the insured and their families in the event of death or disability due to accidents or diseases. According to the Spanish Federation of insurance and reinsurance agencies (unespa), although such insurance is not compulsory – for example, home insurance related to mortgages and civil liability insurance related to automobiles are compulsory – nearly 20 million people in Spain have taken out such insurance, according to unespa.
“The main reason for encouraging life insurance is that no matter what happens, any family can maintain its standard of living for the next few years until the situation stabilizes and is organized in the new situation,” explained Jose Manuel Vega. Head of protection insurance, banzabad insurance company. ” This is particularly important when policies are combined with mortgages, or when a member’s economic contribution to the household budget is far greater than that of the family. ”
Before purchasing life insurance, we should consider the current and future needs and expectations. Assessing the risks that may affect policyholders and their families, and determining the capital required for insurance, taking into account the amount of investment required in such protection, are prerequisites for choosing an insurance policy.
Life insurance is not a hard product. For each insured person, there are different options in terms of coverage and capital, including two or four times the coverage for accidental permanent disability. A key issue is age, although, as Vega says, “there is no minimum age to hire him, because most importantly, insurance must meet every moment’s basic needs.”
There is no family burden at the age of 30. For people over 40, paying a mortgage is not the same as having two children. In the first case, “it may be preferable to purchase life insurance, focusing on the protection of absolute permanent disability, because this part is most concerned with the costs that may be incurred if they stay in this situation, Such as adjusting housing or repaying outstanding loans, “experts point out. For the second case, “it may be more efficient to provide broader death and permanent absolute disability protection at the same level, and to provide insurance capital based on annual income.”.
Family burdens and outstanding mortgages are the two most important factors in taking action to buy life insurance. As the United Nations Environmental Protection Agency (unespa) points out, one third of deaths in Spain between 41 and 50 years old are covered by this kind of insurance every year. The average annual investment is 600 euro per person, per insurance policy – in Europe, the figure is twice that of 1200 euro per person, covering the average life insurance of the insured with a full salary of about five years. In Veiga’s view, “this period is considered to be the appropriate period for the family to recover after the loss of a member.”.
According to LA fatalyty, 3.8 million mortgage lenders in Spain have life insurance at the worst. For mortgage related life insurance benefits, we are the social value disclosure program of unespa insurance. About 70000 Spanish families benefit from these policies each year, with an average benefit of 45000 euros. According to the report, this amount can pay about 4700 mortgages a year, more than 166 million euros.
For the insurance managers of bansabadell insurance, this situation should help to raise awareness when purchasing life insurance, because “it is very important to choose the right insurance coverage, especially the insured capital. It is suggested that the insured capital should be at least three times the annual income of the insured. ”
In any case, Veiga recommends being careful before choosing life insurance and knowing yourself as much as possible. In addition, it’s always timely to seek professional advice, which helps everyone to choose the most suitable product.