What is life insurance?

Life insurance can pay your kins money in the form of capital or regular payments upon your death. It is designed to give you the peace of mind that your loved ones will be cared for once you are gone.


The amount paid depends on the amount of coverage you buy. You’ll decide how they will be paid and whether it covers certain payments, such as mortgages or rents. You may need to ask yourself if receiving a paycheck will affect the benefits to which your family members may be entitled.


There are two main types of life insurance:

  • Term life insurance: for a given period (called the “term” of your policy), such as 5, 10 or 25 years. These types of policies only pay if you die during politics. At the end of the term, you do not have to pay a lump sum.
  • A life Insurance policy: It pays, no matter when you die, as long as you continue to pay your premiums.


What is not covered?

Life insurance generally only covers death. If you can not take care of your family because of an illness or disability, you are not insured.

Some life insurance companies offer terminal services, although they are not automatically granted. A terminal benefit is amortized when diagnosed with a terminal illness. Review the terms and conditions of your policy to determine if it is covered.

Most terms have exclusions (things they do not cover). For example, you may not get paid if you die from drugs or alcohol and you usually have to pay more to be insured for risky sports. If you have a serious health problem when writing the policy, your insurance could exclude any cause of death related to the illness.


You can buy other insurance products for these cases, that covers:
• Long-term illness
• Critical illness cover, or
• Total and permanent disability.


Do you need life insurance?

If you have

  • Dependents, for example, school-aged children
    • A partner who depends on your income, or
    • A family living in a home with a mortgage you pay: a life insurance policy can take care of them when you die.


You may also want a policy covering your funeral costs.

You can not count on the government to care for your family, the money they would receive from the state is well below what you expected.

If you want to financially support your family after your death, consider taking out life insurance.


How much does life insurance cost?

Life insurance can be very good.

Often, a few cents a day is enough to provide adequate financial protection for family members (depending on their age and health status). But monthly payments (also called premiums) vary, so it’s a good idea to check around.


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