The name itself is a strong indication when we talk about life insurance. The most common is the one that covers the holder’s death.

Therefore, the beneficiaries receive the defined value of the policy in the event of the holder’s death.

In addition, this insurance may include a few different types that can be taken out together or separately, which are:

  • funeral assistance;
  • Hospital and medical expenses;
  • Temporary disability;
  • Permanent accidental disability, total or partial;
  • Serious diseases.

It is important to point out that the coverage depends greatly on what the insurer offers and the contract the holder is contracting.

Considerations when choosing life insurance

Having life insurance is very important, so you need to be careful when looking for an insurance company to hire.

  • Research all options well;
  • Choose a security broker;
  • Be very sincere in the risk questionnaire;
  • Read and understand all clauses before signing.

life insurance policy

The policy is the document that guarantees beneficiaries that they will receive the contracted amount.

It is signed between the holder and the insurer. It must contain all the details of the negotiation, such as the type of coverage and policy value, in addition to the personal data of the holder and beneficiaries. 

How much does life insurance cost?

When we talk about many life insurances, it is common to think that the monthly amount is high, but this is a mistake. The amount can be low and fit within your budget.

Of course, some factors can affect this price, such as the insurer, policy value, or even a disease the holder already has. 

However, you need to consult the insurer for more accurate information and know exactly how much life insurance would be for you. 

How is life insurance redeemed?

As we said, some types of the contract allow the redemption of part of the invested amount even if the holder has not died.

That is, it is possible to recover part of the amount paid monthly. However, you need to check the requirements and grace period in the subscription contract. 

 However, it is good to pay attention to the amount that will be redeemed; depending on the number of installments paid, you may lose money in the redemption. 

Therefore, do the math and see if it is worth redeeming part of the amount or waiting for the period stipulated for total redemption, which is, on average, 10 years.

Is life insurance worth it?

If you care about your family’s financial well-being and fear that you won’t be around to keep that security, then the answer is yes, it’s worth it. 

Life insurance gives more confidence to people who don’t want to leave a loved one in funeral debt, for example.

In addition, it is possible to redeem the policy’s total value after the stipulated period, which also helps in life in financial tightness.

To make a better decision, it is necessary to analyze the financial budget well and verify that the installment fits without tightness.

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