LIFE INSURANCE

What is life insurance?

Life Insurance acts as a safeguard against a possible situation of economic hardship for your family in case of his death.

What is Life Insurance?

Many are concerned about the economic problems that may cause his death his family. His greatest fear is that both your spouse and children do not have the means or income to take care of funeral expenses, debts of housing and subsistence expenses.

Life Insurance acts as a safeguard against a possible situation of economic hardship and the beneficiary will receive a sum of money in the event of his death. Giving peace to his family. You by signing a contract with the insurer, it promises to deliver to people who you have designated beneficiaries a sum of money at the time of his death. Its obligation under this contract is the payment of the premiums, in the manner stipulated in advance. Some policy can benefit the insured in life. These policies accumulate savings that can be used in the future such as to supplement their retirement or whatever you want destine.

For many this issue is somewhat violent, but good advice is essential to study the diversity of offerings to determine which is the ideal coverage for you according to your needs.

Why hire a life insurance?

The need for life insurance will depend on your personal and financial circumstances. Personal guidelines has to consider are: a spouse, young children and you are responsible for their welfare ?, His parents are older or have a disabled family ?, need capital to set up something independently or for private use and insurance can help ?, retirement or pension is very low to maintain the standard of living of their own if you were not ?. If you answered yes to one or more of these questions you may consider hiring a life insurance for peace of mind and that of his family.

Life insurance also often used to pay estate taxes and funeral expenses. Also thinking about the educational future of their children, you can be used to pay for academic studies.

What is sure ideal for you Life.?

Choose a safe is no easy task, but choosing correctly can mean significant savings. Remember, Life Insurance is a benefit not a burden. How long would need to be insured? How much do you think your family would need in order to live when you die.? Would you like only coverage or also create an investment fund for retirement or paying for college for their children.? Do I need to leave provided payment of the mortgage on your home to avoid economic hardship to yours?

If you are the only source of income, you have to think about coverage that allows that his family can stay until they get another source of income or your spouse get a job. But if you are single and live with their parents or alone, you do not need a life insurance. Because no one who depends on you, you only need to anticipate savings for the funeral and other small expenses.

To decide whether a life insurance you need, you should consider the number and ages of their children or minors by the needs of his family and enough money to survive to meet your new financial situation. Insurance should not necessarily be for life, you should review your insurance needs regularly and if your income changes or your children become independent you may no longer need a safe or at least the same type of insurance.

Funeral expenses

Many do not think about that, but if we stop a moment we realize that a funeral involves a lot of expenses. These expenses will, to be faced by his family. To spare add greater evils may include in its policy Life Insurance funeral expenses and burial. To get an idea much are the expenses, funeral service information and the ability to plan every detail in advance.

Life insurance is a core component of most families’ financial plans. Learn why it’s an essential investment for protecting your assets—and your loved ones.

Recent years have hurt more than helped the financial security of most Americans and their families.

Savings are low. Personal spending continues to rise, hand in glove with consumer debt. And huge numbers of eligible employees don’t participate in 401(k) and 403(b) plans—or don’t contribute enough.

Take a moment to think about your personal financial situation. Are you saving enough for retirement? Would your family be able to financially survive without your income? If the answer to either question is “no,” you’re not alone. The fact is, fewer and fewer Americans are setting aside enough money to achieve their financial objectives, let alone protect what they already have.

The good news is that you can help smooth the road to financial security in the future by making educated choices today.

Don’t neglect your insurance needs.

Immediately following September 11, 2001, new life insurance applications and coverage increases rose, but now the issue is fading from the minds of the American public. People are once again neglecting their protection needs.

Life insurance is a core component of most families’ financial plans. It provides a degree of financial protection against the certainty of death and can help survivors cover specific costs after you’re gone.

If you die, your family not only loses your income—they may also have to spend your retirement savings just to get by. Life insurance helps to close that gap and maintain long-term investments for the wellbeing of your beneficiaries.

Consider the types of life insurance available (and talk to your financial advisor to determine which is right for you):

• Term life insurance provides budget-based coverage for a specific “term” of time, and is best for covering temporary expenses like consumer debt or a mortgage. Term policies can usually be converted to permanent policies.


• Permanent life insurance provides long-term coverage, plus tax-deferred cash value that can be accessed or converted to an annuity. Permanent policies usually come at a higher initial premium, but the cash value helps to offset future out-of-pocket costs.

Life insurance death benefits are usually income tax-free and can be used to complete a retirement plan, generate lifetime income, pay off the mortgage, and provide funds for childcare, college educations, and more. Life insurance policies that accumulate cash value can often provide tax-advantaged money to help meet retirement or emergency cash needs, too.

Your financial advisor can help you determine which policies are best for your unique situation. Whatever your goals, a life insurance policy isn’t only a “just in case” investment. It’s a way to help ensure that the people you love are cared for, even if you’re no longer with them.

Who collects Life Insurance?

The insured's who appoint the beneficiary and may amend this decision after many times as desired.

In case of death Who charged life insurance?

The insured names a beneficiary. This should be informed of the existence of the policy, if any changes and where it is stored is performed. Remember that the policy will be paid if the beneficiary making the claim for payment after the death of the insured.

Should appoint an additional beneficiary, to be sheltered in case the chosen beneficiary dies first. To make the claim of the policy you no counsel is needed, the recipient should contact the insurance with the policy in hand. Generally, it will be maximum 7 days to report the incident and complete the formalities of claim.

For not include a beneficiary, the beneficiaries will be his legal heirs, ie your spouse, your children equally, parents, etc. by descent. Beneficiaries can be changed all the times you want.

When a medical examination is required?

Generally, it depends on the age and the amount to be insured. Do I have to answer a questionnaire is sufficient or that the insurer requires a medical examination. Control medical costs will be paid by the insurance company.

If you need only fill out a questionnaire, answer truthfully, the insurance check your answers with your medical history. If you lie, the insurer may refuse to pay the compensation at the time of his death.

How to determine the amount of the policy?

In determining the amount of the insured income is taken into account:

Fixed expenses that the insured has to face every month.

Other financial liabilities that are not within the fixed monthly expenses.

Credit history.

Age, height, sex and place of residence.

Health examination. Smokers typically pay more for their life insurance.

Responses to questionnaires routine and leisure activities, which is usually the insured.

Depending on these parameters a forecast risk becomes: injury, illness and death to determine the premium it will pay the insured.

How to contract life insurance?

You can perform the contract through an intermediary or broker, through the intervention of an insurance company or a bank or using your company or partnership entity.

The broker collects its commission fees, which are deducted from premiums in the early years of your policy. As the benefit is based on a commission possibly it tries to sell the policy that gives greater personal benefit. On the other hand there are very responsible and knowledgeable, to guide you on which is the most convenient according to your needs. It will make a detailed description of each policy and give in writing the amount of each. Will respect and give you time, so you can discuss it with your wife and not pressure, for the effectiveness of the contract.

Banks or insurance companies: It usually has no fees so they are less expensive. Some banks have plans Life Insurance with great versatility. Because of the multiple offers, you should proceed with caution. Compare prices, do not forget and ask to be knowledgeable.

You can also use insurance through companies are group insurance rates, which are cheaper and generally does not require any medical supervision.