There are currently two types of life insurance: traditional and redeemable. The latter gives the insured the opportunity to redeem part or the entire premium paid to the insurer, even if no claim occurs.
While some companies may present this service as an investment, it is not. Although the plan offers the possibility of redeeming income, this additional amount is embedded in the rates and the percentage rate of return exceeds inflation for the period. That is, there is no profitability.
However, there are still advantages to this redeemable model. In addition to being a tool for creating a financial reserve, these plans have a longer term (exceeding 10 years), so that it is possible to reduce the increase in the premium amount, which is adjusted based on inflation only. Thus, your long-term life insurance spending is much more predictable.
Why hire life insurance?
Life insurance should be the basis of family financial planning for any family. It is like a seed of security that you plant in your home, ensuring that unforeseen events are not a cause for concern.
The main advantages of purchasing life insurance are:
- Peace of mind: No matter what happens, your family will be safe and can recover under any circumstances.
- Financial security: The spouse and children will not have to worry about finances, as insurance gives them the opportunity to maintain their old standard of living.
- Cost-effective: Insurance fees are not high, especially considering the number of advantages you have when purchasing one.
But in order to prevent this from happening and you can have the financial peace of mind to secure your peace and that of your family, it is important that you look for a reliable life insurance expert to consult on which life insurance type will be best for you and your family.