We have all heard of Life Insurance and if we do have credit, such as housing loans, then the probability of having life insurance is higher. However, there are few bank customers who subscribe to life insurance alone, that is, without it being associated with a loan they have contracted. Therefore, it is important to write a little about life insurance and ask if you need life insurance.
Life insurance makes it possible to guarantee sustainability in the event of death or disability. There is a financial benefit for the survivors or for the beneficiaries of the insurance, however, if you are single without any dependents, you will need Life Insurance.
Do You Need Life Insurance?
The coverages of life insurance are valid both in case of life with death, but not all of us need life insurance, mainly because this still weighs a bit in the family budget.
If you do not have dependents who depend on the effort of your work and your income to survive, you will not have much interest in owning life insurance. However, if life insurance has invalidity insurance it may make sense to have life insurance, not only because it will allow you to maintain your standard of living in case of invalidity with will also give you the certainty that your future lies stable.
So, we can say that you need life insurance whenever:
- Has someone in charge (children, wife, friends, parents who live with you, among others.)
- It has a loan (car purchase, home purchase, among others of considerable value)
- Has a risky job;
- He has incomes and needs them to survive.
However, the importance and possessing life insurance can decrease depending on your personal and professional situation which may allow you to question if you even need life insurance.
Not influencing decision making, there are situations where you may not need life insurance, for example:
- It has no one who depends on itself
- You are retired and live on your investments and your savings
- Ensures dependents and spouses financial stability now and in the future;
So Do We Need Life Insurance or Not?
In this field many are the opinions and all are valid. Some experts say that regardless of whether they have dependents or dependents, everyone who has an income must have life insurance. Other experts say that if you are single and have no one to take care of, or if you are married recently, without children and with two salaries then you do not need life insurance.
The idea is simple and all boils down to the existence or not of dependent dependents or of income. However, life insurance is much more than a financial benefit for dependents. Most life insurance policies have disability coverages and are generally cheaper for younger people than for older people.
Therefore, if there is income and depends on this income, it makes sense to have life insurance regardless of your personal or family condition.
Despite being a burden, life insurance is increasingly a standardized product, with specific packages and specific coverages. Soon you can find good life insurance with an affordable premium, however, there are items that should be clarified with your insurance agent or your bank:
- What are the coverages?
- Disability – What percentage?
- Are there exclusions?
- Do you have coverage abroad?
- In case of an accident, what is the procedure to be followed?
- Can I have access to general insurance conditions in advance?
- How long do they take to compensate for a claim?
Owning this type of coverage in Portugal is a common practice required by banks when hiring a loan and most bank customers only have this insurance because it is mandatory. In other countries, having a life insurance is like having a car insurance ( mandatory by law in Portugal ) because it transmits the maintenance of the safe person and their dependents if they exist.