Common doubts about life insurance

Life insurance is not as well known as car insurance, which is mandatory or home insurance that protects a basic tangible asset for everyone. For all this it is very normal that in insurance brokerages customers raise many doubts. In this article we present you the most frequent queries about the life insurance…..

Is life insurance the same as death insurance?

A life insurance and death insurance are two totally different products, although they may look the same. The first is designed to cover the death of the policyholder, but also the incapacity states. The death insurance is designed to cover the expenses that are derived from the death of the policyholder exclusively. In this article we explain the differences between life and death insurance in more detail.

At what age can you buy life insurance?

A life insurance can be contracted practically at any age; however, it is not very common to be contracted before adulthood. Generally, the time when life insurance is usually more appropriate and demanded is when people start to form a family: they buy a house, they think about having children, etc. Life insurance is, above all, a way to protect the people we want in which case we are missing, which is why it is normal to hire them when they begin to establish family units.

What are risk coverages?

Risk coverage is the most common way to purchase life insurance. These coverages are those that are responsible for responding in the event of death, invalidity of an insured to guarantee the economic future of the people of whose family they are part: children, couple, etc.

Is it true that life insurance is good for saving?

Yes, it is quite true. In fact, life insurance is currently positioned as an option for savings even better than bank deposits because, among other things, they are more flexible in terms of the periodic amount to be paid and they can recover the capital invested at any time.

If I use life insurance to save, can I lose the money I have deposited in it?

The insurance is backed by the Insurance Compensation Consortium, so the risk of losing the money that has been deposited in the life insurance is similar to that of the bank deposits, if the company in which we have trusted suffers an economic misstep. However, if when taking out a life insurance policy, we would choose the Unit Linked Insurance Plan (ULIP), which are insurance linked to assets, if we would run the risks derived from the investment.

Finally, Life insurance in particular are very interesting products and it is worth knowing all your benefits before you discard the idea of investing in them.