Life insurance is important to many people. Get to know all types of insurance and see which one fits your life best!
Do you know what life insurance is and how it works? Having this information is important when seeking protection for you and your family.
Even because hiring a type of insurance and understanding the terms of the contract well is challenging! So, the more research you do before closing the deal, the better.
With that in mind, we have prepared content to help you and answer all your questions; keep reading!
What is life insurance?
There are different types of insurance, and the best life insurance policy is one of them. It guarantees that the family will not be financially helpless if something happens to the insured person.
It is compensation that the insurer pays, which is an amount stipulated in the policy, to the family members indicated by the contractor after his death.
However, in practice, it takes work. There are different types of life insurance, each of which offers different types of coverage. Find out which ones are below.
Types of Life Insurance
Before talking about the types of coverage, it is necessary to establish that, in a life insurance contract, there are the following terminologies:
- Holder: who hires the insurance? It is who has life and health assistance. It can be individual or family;
- Beneficiary: who receives the insurance amount if something happens to the holder. The holder chooses it.
Therefore, when choosing a life insurance policy, the holder should carefully analyze his priorities and life goals and, above all, the importance of insurance.
That’s because there are different types of insurance, which can meet different stages of a person’s life; check it out:
Traditional
As we have already mentioned, it is the type of insurance that people are most familiar with, in which a pre-stipulated amount is paid to the beneficiary in the event of the holder’s death.
However, if the holder fails to pay the installments in traditional insurance, the applied amount cannot be redeemed.
Redeemable
Much like the traditional one, however, in the redeemable mode, the holder can redeem the applied amount if he does not want to continue with the contract or becomes indebted and cannot continue paying.
Including the amount redeemed with interest and monetary correction. What can help you get out of debt, right?
Temporary
It is a type of insurance contract for a specific period. So, you need to undergo surgery one by one and want to keep your family safe. It is possible to contract the insurance only for the desired period.
Or during your children’s school term to ensure they have the resources to continue their studies. There are many possibilities.
However, this type of insurance is non-refundable. The amount paid is not returned at the end of the contract or with interruption.
