You live as a couple, you have a stable job and you are considering whether or not you are interested in taking out a life policy. The answer is yes, whatever your personal situation and at any age. We tell you why you need life insurance, a necessary lifeline for your family and also for you.
You design a policy to suit you
Human life cannot be valued with money, so it is the insured who decides how much capital they want to insure. As a general rule, it is usually that amount with which one thinks that in the event that something happens to you, the beneficiaries of your policy will be financially protected. That is to say, they will be able to continue studying, paying the outstanding loans, facing the usual expenses…
Because life insurance is precisely a contract by which an insurance company undertakes to pay the beneficiary a stipulated benefit in the event that the insured dies.
This is the main guarantee, which is always included in these policies, although other important ones are usually added, such as the benefit or capital advance in case of disability, serious illness, accident…
Each one decides which insurance is the most appropriate for their current moment and can vary it as their lives change to adjust it to their needs.
Life insurance helps cover immediate needs
Focusing only on life insurance, without additional coverage, with the money stipulated in the contract, needs such as these can be met:
- It provides security. We cannot hide from the totally unpredictable misfortunes that happen every day. We hope they stay away from our loved ones and us, but we can’t do anything to guarantee it. Since there are things that can be fixed or smoothed out with money, at least we can have that part covered. This is where life insurance provides the peace of mind of sufficient capital in the event of the unforeseen event of death or disability.
- family support Protecting the family in case something happens to us is the main reason for taking out this policy. An economic support is sought for our loved ones if we die or cannot work.
- Cancellation of mortgages. If there are still many years to amortize the loan or it is at a variable rate, when interest rates do not stop rising, with the money from the insurance it may be interesting to pay the outstanding capital and thus live with more peace of mind.
This does not mean that it is necessary to contract life insurance with the bank, so that it is associated with the mortgage. Quite the opposite. The latest studies have shown that this practice is up to 3 times more expensive than if it is contracted directly with the company.
But there is more, why use life insurance directly to pay the mortgage if something happens to us? Better to have that financial cushion in case something happens to us, but let our beneficiaries decide what to do with the insured capital. In this way, they can decide to continue paying the mortgage loan month by month, for example if it is for a fixed term or there is little outstanding capital left. And if they decide to cancel it, they can still do it without losing money.
- Payment of death expenses. When a person dies there are immediate, large and urgent expenses related to the death itself. But there may also be pending loans, account charges, credit cards, etc. Life insurance can also cover death expenses, just like a classic death policy.
- Deal with taxes. After a death, the Treasury requires the payment of a series of taxes, such as the inheritance tax that derives from the inheritance. The money provided by life insurance can be used to pay the tax and keep the property.
Are you already clear why you need life insurance? In that case, enter this online insurance comparator and discover the prices of the most important companies in Spain, so you can choose the most suitable one for you. And if you are still not convinced, ask our experts for advice so that they can prepare a policy tailored to your needs by calling 91 218 21 86 – 932 990 416.
