To start talking about life insurance, the first thing is to define some basic concepts that will help you understand how they work:
Insurance company: Company with which you contract the insurance.
Policyholder: The person who contracts the insurance.
Insured: Is the person whose name is the insurance (usually is usually also the policyholder, but there are cases in which you may be interested in ensuring a 3rd person)
Beneficiary: Is the person who will receive the benefits of having a life insurance contract.
Premium: It is the money that will have to be paid monthly to keep the insurance active.
Although there are different types of life insurance, the basic functioning of these is common. It is based on the payment of a monthly premium, which will entitle the beneficiary to receive a certain amount of money (a compensation agreed in the insurance contract) in case the insured suffers an accident that causes partial, total or death.
The life insurance usually contracted, especially to somehow protect the children and the couple, because after the death or inability to work the insured, do not have to rely on a single paycheck to pay the funeral expenses, the studies of the children or the daily expenses. It is an economic aid that can make it more comfortable to face an event of this kind.
What Are the Advantages of Life Insurance?
Apart from the most obvious ones, which are the protection of your family in the event of an accident, life policies usually have other benefits that you can benefit from while paying the premiums, such as the possibility of deducting the insurance of the income statement. The Allianz insurance also offers you:
- 24-hour medical guidance for the whole family
- 2nd medical opinion
- Possibility to make an online testament