Importance of Life Insurance

Life insurance is a financial mechanism created by man to secure a fund family, through this system a person transferred to an insurance company the main risks they are exposed to during his lifetime: Total death, disability (accident or illness) and production capacity (retirement).

Life insurance is backed by a commercial contract, rests on solid legal platform that gives peace of mind to the insured. Means that the contract must be performed is supported on a technical and financial basis, which makes a highly scientific and reliable instrument. Life insurance is based on the expectation of death of each person having two conceptual elements: the risk premium and market premium is paid by the insured including administrative costs, marketing margin, and pure cost of protection.

The economic value is calculated on the basis of the age of the person and their average income, example: a 35-year-old man is considered productive life to reach age 60, which will be 25 years ahead, if you get an average monthly income of 1,500 dollars will require a sum of 450,000 dollars, that would be ideal and guarantee your family a dignified life.

 Life insurance should be purchased based on specific human needs, which will be based on family income, number of children and level of life of the insured.

Among other specific requirements should analyze the background to cancel the last expenses and outstanding bills that originate in the death of a person which do not support credit and must be settled immediately. The main costs to consider are: Account hospital, medical, nurse, other expenses of last illness, funeral expenses, funeral, cemetery plot, personal obligations as accounts payable, short-term accounts, personal loans, fees judgments and legal costs if any.

We can say that the family insurance in relation to the business is key person insurance, its purpose is business to compensate for the loss of profit caused by the death of that key person, since in all business, there will always be a key person whose capital, know-how, experience and business connections make it fundamentally more valuable in the company. This person must have a protection that covers your family and collaterally to the company, you can buy a company-paid thereby avoiding economic harm to the same insurance.

In life insurance, there is

Aryans plans based on the different types of needs of the insured including: standard of living is a plan that gives permanent insured protection, accumulate savings that serves to maintain current policy to unpaid premiums, temporary plans that their goal is a great protection with reduced premiums, secure debt, mortgages and short-term trading.

We must conclude that life insurance is necessary in the family need protection, and that the deceased does not require shelter, food, education, clothing, or other material need. Unfortunately, you think about life insurance higher age when the cost is very high and should provide and acquire at a young age, with premium low and easy to afford insurance. Better to have a life insurance considering that life has an end, it is impossible to avoid some risk.