Life Insurance acts as a safeguard against possible economic constraints and the beneficiary will receive a sum of money in the event of his death. Giving peace to his family.
Traditional Permanent Life Insurance
Life Insurance is death insurance. THE INSURANCE ASSUMES THE RISK OF THE DEATH OF THE INSURED.
The key is to know when death will occur. As it is impossible to establish, the insurance is handled with the odds ie taking into account the mortality rate. Studying the number of people, who die per year, age and average sex is set an annual premium amount plus interest.
Traditional insurance offers you protection for a fixed term, which is defined at the beginning of the contract. In traditional insurance the amount of the fees is always the same and can not withdraw money before the time agreed in the contract. The payment of the premiums must be made within the terms established in the policy, in turn the amount to be paid can not be different from that contained in it.
Universal Permanent Life Insurance
Universal Permanent Life Insurance gives the insured more flexibility in relation to death benefit, premiums and cash value.
It offers the possibility of varying the amount payable to the beneficiary, whether it is desired to decrease or increase the value of the policy without the need for cancellation and subscription of a new policy. In this way, it is flexible depending on your income or changes in your insurance needs.
Some insured people start with a form of payment, for example monthly payment, and then want to modify it to a semi-annual or annual payment. This insurance offers the possibility of varying the frequency of payments and also the amounts to be paid. In this modality you will have the possibility to decide, which amount of money destines to the premium and that it imports to the investing. There are certain limitations that you will have to respect.
You will have to pay the minimum to keep the death compensation and the insured decides how much to allocate to the reserve fund.
As all temporary insurance will have increases depending on your age.
In permanent universal insurance the accumulation performance in the savings account are greater than those of other permanent insurances, because a minimum percentage of performance is guaranteed. They will be higher if the company has made good investments.
Variable Permanent Life Insurance
Variable Permanent Life Insurance contributes investment risk to insurance because it allows the insured to invest the accumulated savings in securities such as stocks, mutual funds, etc. variable. It must be taken into account that the investment risk will be borne by the insured, the insurance company does not guarantee any kind of performance.
It is considered variable by the fluctuations, which can be presented in the insurance value and in the investment accounts. If the investment is successful, the value of the insurance will increase and more money will be accumulated in the savings account than in any other permanent insurance. But, if a good investment is not made, the premium will be very onerous.
The capital to be contracted will be the one that the insured needs, to maintain the economic tranquility of his family in case of his death, always considering his income, expenses, standard of living, etc.
Complementary Insurance
There are complementary insurance for accidental death and absolute and permanent disability that can be considered, to extend any of Life Insurance. It would have complete coverage against unforeseen serious illness or accidental death.
They are sure to have no impact on the total cost of insurance. These insurances provide an amount depending on the annual premium contracted. It is a very convenient insurance for the professions with risk, because it guarantees the coverage by any type of accident.
Complementary insurance is optional and can not be contracted independently. They are complementary because they have to be linked to the main insurance.
It is an annual automatic renewal, with a percentage increase or cumulative fixed rate. The advantage of taking out this insurance is that it includes accidental death and permanent or absolute disability for any work environment. Therefore, it is especially complete for people with risk jobs or for those who are self-employed who protects them from any accident.
