After so many months of pandemic, in which we have seen how the disease has unexpectedly disrupted everything in our lives, we probably see the future in a different way. The security of the family and the uncertainty of what may happen tomorrow have become a priority for many people like you, who perhaps no longer see it so far away to try a life insurance comparator.
With this post we want to help you find the best life insurance in 2021, giving answers to those questions that you may be asking yourself now, at a time when you see how your children are growing up, you are worried about the mortgage... and what may happen.
Whether it is necessary or not; whether it is too early or too late to take it out; what such a policy covers; what is the benefit of having this type of insurance... these are the questions we address below, with information and advice to ensure your future and that of your family with the best life insurance policy.
You will see that the best life insurance can be cheaper or cheaper. But it is essential that it meets your vital needs, with adequate coverage. And if, in addition, it has a more economical price, so much the better.
When is life insurance necessary?
Life insurance always comes in handy. In every family, it is necessary to have some protection to cover unforeseen events that may arise in the future. And any event that jeopardizes the stability of the household, such as the death of one of the spouses or the loss of a job due to a disability, must be taken into account.
When taking out a life insurance policy, the insurer covers with an indemnity the lack of income that occurs in a family nucleus when the insured dies. You can also advance this capital if you become unable to work. In addition, this policy can cover debts or even the installment of the mortgage loan, with the life insurance linked to mortgages.
Calculate the price of Life Insurance
Death coverage is the most usual and the one that most users think of when taking out this policy. But do not forget that you can take out a life insurance policy that, in addition to death from any cause, also covers situations of disability and even dependency.
The choice of taking out a life insurance policy is a very personal one. The moment when you decide to take out a life insurance policy usually coincides with personal situations such as the arrival of children, the beginning of a new working stage in a higher risk activity, or, simply, the passing of the years and concern for the future. The truth is that there are many reasons for taking out life insurance.
Is there an age limit for taking out life insurance?
Yes, there is. The age at which you can take out a life insurance policy ranges from 18 to 65 years old. During all these years, you can take out this policy, although you will see that the price of life insurance varies with age, as we will tell you here.
In addition, you should bear in mind that there is an age limit at which the insurer stops providing coverage, which, depending on the insurer, is usually between 65 and 80 years of age.
However, it is worth remembering that most insurers offer coverage in their life insurance policies on an annual basis, and they are renewed year after year, until the term of the insurance policy is reached. If the contract is not renewed and the coverage ends, the life insurance ceases to be in force and the insurer will not cover you, as we explained in this post on the duration of a life insurance policy. When calculating life insurance, keep this in mind.
How much does a 50-year life insurance policy cost?
As we have seen, to get the best life insurance you don't have to wait until you reach a specific age. Although, as we get older, insurance companies raise the premium of the policy.
The age of 50 marks a before and after in this matter of insuring the future of the family with a death policy. If you are 50 or older, you will see that most insurance companies have offers for you, and some even create life insurance policies for the over-50s.
Why are life insurance policies for seniors more expensive?
Apart from the offers and promotions made by some insurance companies, life insurance for the over 50s tends to be more expensive. And that is because as we get older, life insurance becomes more expensive due to several factors:
Age of the insured
The fundamental one is age. Life Insurance companies work on the premise that, as we get older, we are exposed to more illnesses. And that increases the probability that we may die. In other words, the risk covered increases with age.
Occupation of the insured
In addition, other factors are taken into account in the cost of life insurance, such as the activity you carry out on a daily basis, whether you travel a lot by car or if you have a profession that involves health risks.
Life insurance coverage
Nor can we forget the coverages included in our policy. The best life insurance policies, in addition to covering death and disability, offer double capital in case of death by accident or double the indemnity if death occurs due to a specific cause, such as a traffic accident.
The life insurer
And finally, the life insurance company you choose is key. The price of the policy also depends on the company and its commercial policy. There are insurers that offer better life insurance prices to people over 50 years old because they see them as more stable clients, despite the risks we have pointed out. And others offer higher prices and even reduce coverage to policyholders who have already turned 50 and are on their way to retirement.
If you find yourself in this situation and, at the age of 50 or over, you find it necessary to take out a life insurance policy, don't worry. We can help you: click here and fill in the form so that one of our experts can get you the best life insurance offer for the over 50s. Your peace of mind doesn't have to cost more, just because of your age, don't you think?
What does life insurance cover?
Life insurance can include various coverages that are essential in certain situations for the maintenance of the family. The capital guaranteed by the insurer can be used to pay the remainder of the mortgage, cover medical bills or, simply, safeguard the family economy after a loss.
The basic coverage of life insurance is death, although it is not the only one. In addition to death, life insurance can cover other additional risks, such as temporary or permanent disability, partial or total disability, or death due to special causes, such as a traffic accident.
Death coverage
This is the most important coverage of life insurance. This guarantee ensures a death benefit for the beneficiaries, although many insurers offer a series of services associated with the payment of the insured capital, such as coverage of burial expenses and the management of the formalities related to the death.
Some insurers also offer an advance of the capital sum in the event of death to cover, for example, funeral expenses.
In the case of death coverage, it is important to take into account the sum insured and the causes of death.
Sum insured
The sum insured in a life insurance policy refers to the money that the beneficiaries will receive in the event of the policyholder's death, which will be revalued over time. There are policies that include among their coverages the guarantee of double or triple insured capital when death occurs due to a specific cause, such as an accident or traffic accident.
In this way, the death will always be insured but will have a higher indemnity if the death is not due to natural causes.
Causes of death
In this sense, it is important to confirm that the life insurance policy covers death due to any cause, in order to avoid problems with the insurer. Among these causes should be the natural death of the insured, death by accident, or death as a result of suicide.
Keep in mind that life insurance is, fundamentally, a policy to protect the family and those closest to you, especially when they are financially dependent on you and you are worried that, suddenly, one day everything will change.
The economic impact of a death or an accident that prevents us from working can be devastating for the household and life insurance helps to overcome these moments. To summarize, these are the benefits of life insurance:
Financial protection for your family.
They are a good way to ensure the future of your family. If we have a dependent child or live with people who depend on us, a good life insurance policy can cover debts, guarantee the payment of a mortgage or ensure an important economic cushion to withstand the impact of the loss of income of the insured.
Cover your debts and pay off your mortgage
Life insurance money can be used for many things, but on many occasions, it is the best way to pay outstanding debts and loans. The most obvious case is the mortgage payment that many life insurance policies cover, as we tell you here.
Flexible insurance throughout Life
Another benefit of life insurance is that you can make changes to the policy over time. Thus, you have the possibility of adapting the insurance to the situations that develop, either by modifying its coverages or the names of the beneficiaries. In this way, the best life insurance policies change as your needs and priorities change.
As you know, our priority is to get you the policy you need and to advise you so that you always feel protected. So, if you're thinking that it's time to secure your family's future, count on Elite Seguros. We know how to make your life easier with the best Life Insurance. Request your free quote here!