While it’s preferable not to think that anything bad could happen, misfortunes happen when we least expect it.

Without being pessimistic, it is always good to be prepared for anything that may happen in our lives. And good financial protection insurance brings peace of mind during the most difficult times and is indispensable in any family financial planning.

Above all, it is necessary to have economic support that makes the most difficult moments of our lives more bearable. The death of a family member, for example, in addition to being a great sadness, will cause a reduction in income and possible immediate financial problems.

Although grief for the loss of a loved one cannot be paid for with cash, the truth is that the benefits offered by life insurance will prevent further problems from being added to this predicament.

In this article, we will understand how life insurance works, what it covers and what are the main benefits it offers. Come on?

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How Does Financial Coverage Work In Family Financial Planning?

Life insurance is a contract between you and an insurance company. You agree to pay the policy on a regular basis and the insurer agrees to pay a sum of money in case of disability or to your beneficiaries if you die.

Within these parameters, there are several types of life insurance. You can choose the right type for your goals and budget.

You will designate the beneficiaries who will receive the life insurance payment, which is called the death benefit.

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It is important to inform your beneficiaries that their life insurance exists. They won’t need to have the policy on hand to make a claim later, but they will need to know which insurer holds it.

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Advantages Of Taking Financial Coverage Protection?

Taking out good life insurance is very important to keep everyone we love protected. Life insurance is a very important item in personal or family financial planning.

Medicaid asset protection trust protects the family’s assets, pays compensation in the event of death and is exempt from income tax. Next, let’s check out some great advantages of purchasing a policy.

Financial Protection Insurance Does Not Enter Inventory

According to Article 479 of the Civil Code , life insurance does not enter into an inheritance inventory nor is it subject to the insured’s debts.

The amount stipulated in the policy is paid directly and in full to the beneficiaries indicated by the insured, representing an important way to maintain the family’s economic balance in the short term. 

Disability Coverage Is Permanent Or Partial

Unfortunately, accidents do happen—and we can’t predict whether we’ll ever be victims. In many cases, the injured person ceases to generate income and is totally dependent on his family. In case of disability, the policy is paid to the insured, ensuring greater comfort and economic stability. Thus, you are guaranteed to be able to afford medical treatment and not become a burden on your family members.

The Education And Livelihood Of Children In The Future Are Guaranteed

Often, those who have children are haunted by the fear of dying and leaving them helpless. We want to ensure the best for those we love so much. Insurance is essential so that, in our absence, they are able to bear the cost of studying for a good professional training.

What Are The Benefits Of Financial Coverage In Family Financial Planning?

Below, we’ll list the main benefits of financial protection insurance:

  • Life insurance beneficiaries, as well as the insured, receive an indemnity from the insurer according to each case and according to the contracted policy; 
  • The capital received by beneficiaries in the event of the insured’s death is exempt from foreclosures . This means that even if the policyholder has debt to be deducted from the inheritance, the life insurance compensation is received in full; 
  • The capital that family members receive on the death of the insured is not subject to inheritance tax and/or income tax;
  • Another advantage offered by life insurance is the possibility to change the policy from time to time. In this way, we can adapt the insurance to the situations that are developing, modifying its coverage or the list of beneficiaries;
  • A life insurance policy not only protects the household, but also protects the insured . The capital can be used to cover the expenses necessary to face any of the circumstances contemplated in the contracted policy. Although the State pays a pension in cases of dependency and disability, for example, the amount offered, in most cases, is not sufficient to deal with the consequences of the situation;
  • The financial protection insurance provides peace of mind to whom the contracts, especially if the person has debts, small children in their care, a job that entails certain danger etc. Whatever happens, money will not be a concern and will allow you to live a much more comfortable life;
  • Thanks to the different types of policies on the market, it thus allows the insured to choose the best form of payment for their reality (monthly, quarterly, semiannual or annual);
  • Although life insurance is not mandatory, thanks to all the benefits it offers, it is one of the best options for providing peace of mind every day. When hiring him, the feeling of security is constant;
  • Far from what it may seem, this type of policy is not just for families. People who do not have dependents should also take them out, as life insurance provides the necessary guarantees to cover a situation of disability or dependency as a result of an illness or accident;
  • Each person or family unit can choose a different type of policy depending on their needs and economic forecasts.

Now that you’ve seen all the benefits and advantages of taking out life insurance for your family’s financial planning, you know it’s an effective way to take care of the future and all the people you love.

Always count on the advice of an insurance broker authorized by SUSEP to choose a quality insurance company, so you can count on all this peace of mind and feel freer to live your present and enjoy your family without worries.

Need help choosing the right policy for you? We are ready to help ensure your peace of mind, your future and that of your family. Request your quote. Click here for individuals or Here for companies.