Life insurance as a future investment
Commonly known as a contract between individuals and insurance companies, life insurance is an instrument of social security with which the company agrees to settle a sum of money to the beneficiary designated, upon the payment of a premium. The capital will be paid in the event of the death or injury of the insured, in a lump sum or through an annuity.
Why subscribe to a life insurance policy
It’s the kind of protection that is recommended, especially to people who have children or dependent relatives. A life insurance also represents an economic investment, in case of death and enables your family to maintain a standard of adequate way of living even if an unexpected event occurs, such as death or serious injury to the detriment of the insured person.
The different types of life insurance policies
The different types of life insurance are classified into three categories:
Life insurance policies for life: In this case, the insurance does not provide coverage in case of death of the insured, but if that were to happen during the period covered in the terms of the policy, the company will take every precaution to pay the amount of the premiums paid until the death of the insured.
Life insurance of mixed policies: it is a type of policy that provides the liquidation of the capital sum to the beneficiary in case of death of the insured, so it can be paid at the time of expiry of the contract. It is a form of investment in which the planned capital can be paid in a lump sum or as an annuity.
Life insurance policies, in case of death: for this kind of life insurance, which may be temporal or lifetime, the payment of a capital sum to the beneficiary is designated by the contract only in the event of death of the insured.
To sum up, the option of having a life insurance should be consider as a future financial investment, with benefits both collective and personal. Life is something that should be valued deeply and making a decision to form a life insurance contract with a company may come in handy in times of need.