Everyday life exposes us to risky situations that can strongly affect personal finances. On any given day, an illness can destroy everything we have worked for.
Situations such as disability or death can destroy the patrimony that we have forged for our family; for this reason it is important to have life insurance that protects our loved ones when we can no longer do so.
The offer of policies in the market is very large, so ViralKaboom recommends following a few steps before choosing a tool that fits our needs.
1. Familiar with vocabulary
It is important to know some terms that will help you make a good decision.
- Coverage:Is the specific risk for which insurance will protect you.
- Policy:is the document that contains the general rules of your insurance.
- Sum insured:refers to the maximum amount that the company will pay you if the covered claim occurs.
- Premium:refers to the cost of insurance.
2. What do you want to insure?
There is unemployment insurance, medical expenses, cars, real estate or personal. Prioritize your needs and be prospective, analyze what things or who are vulnerable.
3. Economic dependents
Consider whether you have young children or if they are studying, are single or retired; how much income besides yours will commit.
4. What coverage do you have?
Commonly the coverages are for death, damages to third parties or disability; however, you can opt for terminal or serious illnesses or funeral expenses. It is suggested that coverage be five to eight times current income.
5. Define your budget
Think about how much you earn and how much you could allocate for the insurance payment.
6. Review options
The insurer can be a bank or perhaps a specialized company, considers the trajectory, presence in the city and country, prices and what its strength in the sector. The insurer must have physical offices and permanent care websites, as well as alternative means of communication.
7. Seek advice
There are insurance agents and insurance brokers. The first are people who guide you on existing insurance and make you a tailor-made plan. Meanwhile, the broker are intermediaries of several companies, which are dedicated to marketing contracts and insurance policies to their clients.
Many times the decision for insurance is only motivated by the price, however, the ideal is to make an evaluation of the advantages and disadvantages of each option.
9. Organize your income
Look for payment plans that don’t compromise other necessary expenses in your family.
Clarify the name and percentage that will be granted, remember that they cannot be minors. Avoid intermediaries, if you appoint someone else to deliver the sum insured this action is only a moral obligation.