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.
Life insurance has three modalities: Life Risk, Life Savings and Mixed Life.
Life insurance covers the insured in the event of death, in the event of suffering a serious accident that may cause disability or in the diagnosis of a serious illness. It is important that life insurance fits your lifestyle, family, needs and budget, since its coverage can make a difference in your future.
We list some of the advantages of having life insurance:
Financial security for your family
They are a good way to ensure the future of your family. If we live with people dependent on us, by taking out life insurance we will be guaranteeing their safety and well-being in the event that we are absent.
Protection in the event 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 necessary expenses to face any of the circumstances that are contemplated in the policy and that we have suffered. Although the State in some cases, such as dependency and disability, receives a certain amount, in most cases it is not enough to cover the consequences of the situation.
Debt and tax free
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
They are a guarantee when it comes to ending outstanding debts. With the most common case being the mortgage payment, it is possible that after our death or inability to continue working we still have not finished paying off all our 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.
They adapt to your needs
Another advantage of life insurance is the possibility of modification of the policy over time. In this way, we 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 in the market, the insured can choose the payment method that suits him best (monthly, quarterly, semi-annual or annual).