Life insurance is one of the most important financial tools we can use to secure the future of our loved ones. Although often overlooked, it offers a host of benefits and protections that can make a significant difference in your family's life. Let's take a look at why life insurance is so important and what its key benefits are.
1. Financial security for your loved ones
The primary function of life insurance is to provide financial security for your loved ones in the event of an unexpected loss. It provides a lump sum that can cover expenses such as mortgage, education, daily expenses and even debts. This ensures that your family won't be financially strapped in hard times.
2. Peace of mind and protection
Life insurance gives you peace of mind, knowing you've done everything you can to protect the future of your loved ones. It acts as a safety mechanism that allows you to focus on the present without worrying about the future.
What does it cover?
Required Coverage:
Death due to accident or illness;
Permanently reduced or lost capacity to work 71%-75% (depending on the insurer and conditions ) due to accident or illness.
Additional insurances:
Accident insurance
Critical illness insurance
Long-term health insurance
Comprehensive health insurance
Children at Risk Insurance.
The insurance does not cover the following cases:
- Suicide, attempted suicide or conditions caused by self-harm.
- Committing or attempting to commit crimes.
- Exposure to temperatures such as sun and heat stroke, frostbite or cold, unless the result of an accident.
- Problems related to pre-existing diseases or disabilities.
- Engaging in betting, challenges, fighting or hooligan acts.
- Practicing risky occupations, sports or hobbies.
- Use of alcohol, drugs or other intoxicants.
- Participation in medical research or clinical drug trials.
- Other exclusions which are specified in the General Conditions of Insurance.
Coverage Limitations:
- The insurance is valid only for persons between the ages of 18 and 64.
- Persons over 65 years of age, as well as incapacitated persons, cannot be insured.
3. Tax benefits and investment opportunities
In some cases, life insurance may provide tax benefits that reduce your overall tax liability. This depends on local law and the terms of the policy, but can be a significant advantage to your finances. Some types of life insurance also offer investment options that can increase the value of the policy over time. This is particularly useful if you are looking for a way to combine protection with long-term investments.
Life insurance with investment options provides coverage in the event of death or survival, with a portion of the premium invested in a fund chosen by the client. This carries investment risk, with the possibility of gain or loss depending on the performance of the fund.
The product is suitable for people who wish to accumulate capital over the long term while having insurance protection. The minimum period of insurance is 5 years and the customer has the option to cancel the insurance within 30 days with a refund of part of the premium.
The risk profile of the product is medium to high as the returns depend on the market. In the event of death, the insured receives the highest amount between the agreed sum assured and the value of the investment account. Upon survival, the insured is paid the value of his investment account.
Insurance also provides tax benefits and the value of the investment can increase in different scenarios over the long term.
4. Flexibility and customization
Insurance companies offer different types of policies that can be customized according to your needs and budget. You can choose between different terms, coverages and additional options to suit your specific requirements. Some companies offer options to combine different types of insurance into a package, which can result in better terms and lower premiums. It's important to review all terms and conditions carefully, understand what the coverages and limitations are, and consult with our experts to choose the best solution for you and your loved ones.