More and more people now subscribe to a life insurance. What it is he really and what is it that makes it different from life insurance ?
The mode of operation
By purchasing insurance, the insured would have to pay on a regular basis, a certain amount of money. According to the companies, the payment can be done monthly, quarterly or annually. The amount of the pension depends on the age of the insured and what he envisions for his family. The capital contributions and the various guarantees associated with the contract will be chosen at the time of purchase.
Beneficiaries and optional coverages
The beneficiaries of a life insurance are the relatives of the insured. This contract is meant to protect his family, financially, in the case where the death occurred. If the risk happens, to learn of the death of the insured, the persons named on the contract will affect the guarantee. This can be :
- an annuity education, that is to say, a sum accumulated to ensure the education of children
- a capital which will be paid to the spouse of the deceased to ensure his or her future or pay for the funeral
- a monthly pension, …
Other optional coverages can be joined. These last are not necessarily related to the death of the insured, but can the cover of his lifetime in the event of :
- loss of employment
- accidental death
- inability to work, …
When it comes to life insurance, it can take the form of :
- a term insurance :
It involves the determination of a due date on the subscription. If the death of the insured occurs prior to the maturity date, an annuity or a capital sum will be paid to his or her family. If it is a pension education, a certain sum will be paid to her children to ensure their education until they reach the age specified on the contract. In the case where it is still alive at maturity, the contract ends, but the contributions will not be refunded. Only his death will trigger the reimbursement of the accumulated capital.
- whole life insurance :
This type of agreement is without a term and does not end until the death of the insured. This is the formula to choose when it wishes to offset the decline in income of the family after his death. It also helps to pay the costs of the estate, to finance the funeral of the deceased or to ensure the future of a child with a disability. For this, it is necessary to opt for a retirement survival. With this insurance, the insured may, as soon as his or her lifetime, to prepare his estate since he can mention expressly on the contract, the people who will inherit the capital.
Death insurance and life insurance
Both are insurance contracts for the future. However, if the life insurance allows the insured to build up a capital for his old days, if he is alive at the due date indicated on the contract, life insurance is a contract to lost funds. In other words, the insured may not recover his money on the due date even if it is in life and for good reason, he is not the beneficiary. The insurer will keep the amount paid until her death, and it is only after that the money will be given to the beneficiaries listed on the contract.
Everyone can purchase life insurance and the younger you are to start the contract, the more important will be the capital which will inherit to your descendants.