It is essential that you have a life insurance if you have a family that depends on you financially, as children, parents or spouse.
A major issue in family finances is security, and one of the tools to provide financial security is life insurance. Today I will discuss life insurance as an option to protect our family and the things we should know about this.
Life insurance is designed to replace revenues provided by the head of household or any person having economic dependents if this person were to die. It is essential to have one if you have a family that depends on you financially, as children, parents or spouse. Its price varies with respect to the sum insured, the insured’s age, whether male or female, your health and whether you smoke. There are different types of life insurance, but mainly fall into two:
- Temporary. It is only to cover the risk of death, for the specific time for which he is hired, but after this period if the insured survives does not get paid anything.
- Regular life. This insurance lasts the lifetime of the insured. If you die you will pay the sum insured but if it receives at age 99 because that age is considered “technical death” for insurers. Most of this type of insurance premiums and accumulates there are cases in which the insured is returned 100% of them after a certain time, say 20 years of payment.
What is the Sum Insured?
The sum insured is the amount that the insured’s beneficiaries will receive if he dies. It is set in the time when the insurance contract and is one of the factors that influence its price.
Can I have as beneficiaries under Age?
All children under age legally cannot collect insurance because they cannot have possession of the sum insured, could only collect it for them who has custody of the child, guardian, or who is determined in the will of the insured, in accordance with civil law. Even insurance contracts have warnings in this regard, because if it is not illegal, makes the claim. Therefore it is recommended to appoint the person we trust to purchase insurance for our children and also provides for who could be the beneficiary in the event of simultaneous death of both spouses.
Many agents recommend setting up a trust to ensure that the sum insured will reach children, as it is more flexible to handle the will and in him instructions on how to proceed with the compensation given. Insurers have it as a complement to the protection when you have minor children.
Do Insurance beneficiaries be Notified?
Insurers do not receive notices of the deaths of their policyholders and therefore cannot notify beneficiaries who have insurance in their favor. This is why it is important to inform our loved ones when we hired this protection for them and provide them with the necessary documents to claim it.
Many people do not tell their families with life insurance or even ignore that hired them, such as the case of funded benefits that come as another product, like any credit or phone bill.
Adequately protect our family is in our hands, it is only necessary to tell more of the options we have for you even when we’re not with them everything they need.