Life insurance falls within the branch of personal insurance. They take care of the person and the situations that can negatively affect their health, their existence or their physical integrity, to insure them with a variety of life insurance policies focused on different situations.
As we have already pointed out, within life insurance there is a lot of diversity. The normal thing is that they start from a basic policy to which you can add coverage that will cover specific circumstances. It is important that you know the policies, their coverage and particularities so that you can choose the most suitable one for you and your family and life situation. Next, we are going to give you detailed, complete and clear information about the types of life insurance that are on the market.
What types of life insurance are on the market
This insurance is the best known and the one that is in the collective imagination when we think of this product. It can be said that it is the basic version of all those that follow. In it, the beneficiaries collect compensation in the event that the insured person dies. This is what is known as a traditional policy.
It is important that you know that this basic life insurance covers death from any cause, be it illness, accident or natural death. Also, some life insurances have a specific clause that facilitates an advance of compensation to cover funeral expenses, etc. This is something that you want to think about and decide when hiring your life insurance.
Starting from this basic situation, you can add other additional coverages. We will talk about all of them below alo you shold kow that america life insurance is legitimate.
Life and permanent disability insurance
This type of life insurance adds disability coverage to the base policy. In this first case it is an absolute and permanent disability. For the disability to be valid, and for the insurance to pay compensation for it, it must be recognized by Social Security. This classifies them from grade I to III depending on their severity and degree of dependence. Despite the fact that Social Security assigns a disability pension, it is very low and hardly enough to cover the person’s expenses.
Hiring life insurance with this coverage will give you great peace of mind knowing that, if necessary, you could face this situation without monetary problems.
Life and professional disability insurance
For the specific case of life and professional disability insurance, you should know that it is a policy that covers health problems or accidents that mean that the insured can no longer carry out their usual work activity, and that it cannot assume a percentage of disability of more than 33%. With an occupational disability, the insured can fend for himself and also work, but some sense is compromised: such as sight, or some part of the body, which prevents him from carrying out his usual profession until the moment of suffering the illness or accident.
In this life insurance, as in the previous one, the insured and the beneficiary are the same person: the one who contracts the insurance, that is: you.
Double capital life insurance in case of accident
What is special about this type of life insurance is that they have special coverage focused on accidents. They are a response by insurance companies to the fact that accidents are one of the most common causes of death among people under 55, much more so than illness and, of course, natural death.
In this policy, in the event of death by accident, the beneficiaries of the life insurance will receive double the compensation that has been contracted. These insurances may also have disability coverage in the event of an accident. In that case, if you take out the insurance and suffer disability due to an accident, you yourself will be the one to collect double compensation.
- Triple capital life insurance in case of traffic accident
Triple capital life insurance is practically the same as double capital, but is limited to insuring traffic accidents. If this unfortunate circumstance occurs, the beneficiaries of this type of insurance will receive compensation that will triple what has been contracted . If you are a person who uses the car every day to go to work, or even more so if you work driving, this insurance that covers traffic accidents is the most suitable for you.
Both this insurance and the double capital insurance are specially designed for young people, between 25 and 55 years old, since it is adapted to their needs, and those of their families, in this age group. In this article you can learn more about these two insurances.
Life insurance for two spouses
This insurance is designed for marriages . It is an insurance that focuses on the unfortunate situation that both spouses lose their lives at the same time. Perhaps it may seem to you that this is a very rare situation, and it may be so, but there are always couples who practice extreme sports together or who travel a lot by car. In the event of a joint accident in which both die, the beneficiaries will receive double the capital that the insured would have contracted in the insurance. This special coverage is not much more expensive than others, and for some people it can be very interesting and give them a lot of family peace of mind.
Life and critical illness insurance
This coverage is known as “critical illness coverage” . The person who contracts this policy will receive an indemnity himself to help him cover the large expenses that must be faced if he suffers a serious illness. The diseases that are covered by insurance are specified in the coverage, and are usually some types of cancer and heart disease.
In the case of women, there are specific policies designed for women’s health that cover diseases that only affect women, such as cervical or breast cancer. In these cases, compensation will be paid to the insured woman so that she can cover part of the treatments or serve as financial support throughout the process until she is cured.
Life and mortgage insurance
Life and mortgage insurance are basic life insurance that the bank includes among its clauses to grant a mortgage and that it is valid. They do this to ensure the payment of the mortgage payments in the event that the owner of the mortgage dies or suffers a disability. The amount that is insured is normally the same as that of the mortgage loan and, almost always, the beneficiary is the bank itself.
The bank will do everything possible for you to contract this type of life insurance associated with the mortgage with them. The problem is that their insurance is much more expensive than that of the companies. To inform yourself in detail about this topic and see what options you have to save a large amount of money on this insurance, you can read this article.
Let’s see a practical example. Christina is 32 years old. She wants to take out life insurance, but she is not sure which one is best for her. She wants to secure a capital of €130,000. She has used our comparator and has seen these options:
- Your cheapest option for basic life insurance will cost you €48.95 a year.
- The cheapest option for life and disability insurance will cost you €82.57 per year.
- The cheapest alternative to double capital life insurance in the event of an accident will cost you €169.29 per year.
- Your cheapest option for triple capital life insurance for traffic accidents will cost you €212.14 per year
In all these alternatives, Cristina has the possibility to consult all the characteristics and peculiarities of each insurance, but you can also write us an email or give us your telephone number so that one of our advisers can help you with everything you need to know about how safe to choose.