You may have wondered how life insurance works or even what life insurance is and if you should have one. In this article, we are going to try to answer all these questions, starting by clarifying what life insurance consists of :
What is the insurance of life?
Life insurance financially protects the person who contracts it and their family (or those who depend on their income) in the event of death or in the event of suffering a disability caused by accident. Taking out life insurance allows the beneficiaries (for example, your children, your parents, your siblings… since you can designate whomever you want as the beneficiary) to have a certain amount of money to replace the income contributed by the policyholder (the person who contracts the insurance), and that can help them to face payments and expenses.
In other words, life insurance protects you, so you don’t have to worry about money in the event of a disability that prevents you from working, and it also protects your family, guaranteeing the financial help they may need in the event that a missing day In addition, on some occasions the Life Insurance also includes services that are of great help to relatives with all the procedures and procedures in the event of death, so that they do not have to worry about these issues in such delicate moments.
What is life insurance for?
Life insurance is so that, if something serious happens, your family has an amount of money that will help them face the future with the necessary peace of mind.
The ultimate purpose of life insurance is to complement or replace the economic income that the person who contracts it generated before a disability or death. This compensation can be used to help your family in difficult times, continue paying for your children’s studies, guarantee the bank the payment of the mortgage or face the payment of other types of loans or debts.
How does life insurance work?
The operation of life insurance is very simple. When a person takes out AARP life insurance, they agree to pay an annual premium (quota) to the insurer. In exchange for this payment, the insurer undertakes to pay the compensation established in the contract to the beneficiaries of the insurance (that is, to those persons chosen by the insured to receive compensation) in the event of an accident, which maybe death. Or the Absolute and Permanent Disability of the insured, in case you decide to include this coverage additionally in the insurance.
In the latter case, when the life insurance includes Absolute and Permanent Disability coverage, if the person who has contracted the insurance suffers an accident that prevents him from carrying out his work, he will be the one who receives the compensation.
In addition, some life insurance policies include additional services to the coverage so that, at such a complicated time, your relatives can be offered the help they need on issues such as advice and inheritance management or even help with all the paperwork for fingerprint erasure.
All this will depend on the type of life insurance that has been contracted, its coverage, and what it includes.
