Showing posts with label importance of having life insurance. Show all posts
Showing posts with label importance of having life insurance. Show all posts
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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.

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