Have you thought about taking out life insurance that is not so complicated to understand and that it is not necessary to pay so much attention? Permanent life or whole life insurance is what you need. This type of insurance is one of the most classic, it is a policy that you pay throughout your life and when you die compensation is given to whoever you decide and during this period of time you can take advantage of the benefits that are provided to you.
Permanent life insurance is one of the best that the market offers, they establish a specific duration in their policies and once that duration is met, the coverage ends. These insurances do not have an expiration date and have a very interesting savings component: a part of what you pay goes to investment and can generate extra benefits. In this sense, permanent life insurance is also a savings tool.
Conditions to qualify for life insurance:
To take out insurance, you must go through a medical examination, declare your age and your lifestyle. For the insurer it is important to know these things about you, to know how your state of health is, if you play sports, if you smoke, etc. Do not try to hide any of your information as this could cause your insurance to be cancelled.
Term of the policy:
The purpose of this type of insurance is to last a lifetime until you die. However, some exceptions are made when the person who is insured is over 90 years of age, in these cases the compensation is delivered while alive.
Beneficiaries in your life insurance:
The beneficiaries are the people you choose to obtain the compensation after you die, you can name the people you want. You can even name alternate beneficiaries in case the main ones die before you get paid.
Compensation:
This is the money that the company pays out after you die. This way of life does not allow changes in the compensation or benefit due to death, so it is important that you negotiate this point well with your insurance company.
Monthly premiums on your life insurance:
The only condition for the company to cover your death is that you are up to date with your monthly premium payments. In this case, it is about level premiums: you will always pay the same. It is best to hire it when you are young since you are considered a person with a low-risk lifestyle, therefore your monthly premium will be low.
Cash Value-Savings:
With that extra price that you pay in the premiums, the company implements a forced savings mechanism with guaranteed interest in the case of whole life policies. In the long term, benefits are generated that complete the compensation. With that money, the company also levels your old-age premiums, so they are not too high. Also, as the benefit accumulates, there comes a time when the law requires that it be delivered to you. On the other hand, if you decide to cancel the insurance or modify it, you can collect that cash value and take it with you.
Participation and dividends:
In some modalities, as we have explained, whole life insurance includes a participation in a financial investment product. In these cases, the insured can earn extra money with the investments that the company makes with their money. That windfall can be reinvested to create more cash value or stacked with severance pay. But dividends, which are usually annual, are not guaranteed and there can also be losses.
Remember that life insurance is one of the best options for your future, especially when you are a young, single person with a stable job. You can consult with the insurance companies the best options for you.
