All our lives we are full of risks that compromise both our physical and economic well-being. With the passage of time, fortunately, we acquire more goods that are useful for our life: we buy a car, a house, and we also have children and start investing in a business. But how to protect all these assets from the risks out there?
Surely more than once you have thought about how important it is to plan for the future and that, within that planning, you must be prepared for any eventuality. The factors of life change suddenly and from one moment to another, are unexpected and can bring economic problems.
Not for nothing, insurance was invented. Do you sound? Sure you think that they are not the best option to protect a heritage, because perhaps it has happened to you that when you consult something in the bank, you find out that you have insurance for this and for that when you did not even know that you had accepted them.
But, the insurance goes further. It is a contract through which an established amount of money known as “premium” is paid to an insurer, so that you or your beneficiaries receive compensation in case of suffering an unexpected event such as an accident. automobile, a major medical expense or even death.
The insurance and the amounts they cover must be previously established in a document known as the “policy”. As mentioned above, it is common for insurance to be considered an unnecessary expense because in many cases they appear due to lack of clarity in the contracts we acquire, but in reality they are an investment.
The insurances are designed to face any type of economic affectations derived from an eventuality. On several occasions we have talked about having an emergency fund to deal with unfortunate events such as illness or an accident. In that sense, if you do not have an emergency fund, insurance could be the solution.
Why would it be important? Simply because the fact of having contracted insurance is cheaper than solving the unexpected of a milestone. Everything you imagine is possible to ensure: life, a home, health, education of children, a car, a business, funeral expenses and even some technological devices.
To contract any type of insurance it is essential that you know yourself: what are your risks and on what things can fall? But also, it’s worth it to be aware that insurance is essentially for you and your loved ones. If you have children it is worth having insurance, but if you do not have a car, for example, then you do not need to insure anything.
Take into account that over time your needs change and depending on the stage of life in which you find you may or may not need insurance. Suppose you are already some years old then, it would be ideal to have life insurance to prevent any eventuality. The recommendation is that you always, without exception, have insurance for major medical expenses.
Before hiring insurance
The recommendation prior to contracting an insurance is to identify the risks to which you are exposed and to which your family is also, it is also important that you analyze the different options that financial institutions give you so much to compare costs and benefits of each insurance .
In addition, specialists recommend that when filling out the application for insurance, it must be very precise . You must be careful not to falsify data or put misleading names that could motivate the cancellation of the policy and, consequently, make it impossible to collect the insurance against any event.
It is also important that you carefully read the general conditions of insurance contracting. It is good to have no doubts and verify that the insurer and the insurance agent who are selling you the product you are about to hire are duly authorized by the competent authority.
We all have different needs and we are exposed to different circumstances, and that is why you should have insurance that protects you from any eventuality. For example, if you have a car, do not be one of those people who run away when they collide, it is better to assume responsibility, and insurance can help you.
Know the types of insurance
Life insurance is designed to cover the costs of an illness or death. They also protect our loved ones from an incident. Within life insurance there is one for each situation. But, mainly life insurance is considered for events such as death in which the sum insured is delivered to your beneficiaries.
There are also dots insurance that are like a double protection. If you die, the sum insured is given to your beneficiaries, but if you survive at the end of the period agreed in the policy, the company will deliver the money directly to you.
On the other hand, there are also educational insurance that have the function of providing protection so that at the end of the agreed period a fixed amount is given to your children so that they can conclude their studies mainly at the higher level. It is not the same as an educational trust because the latter has the function of generating more returns with the help of a fiduciary, who operates, captures and protects the resources of the fund.
Last, but not least, are the pension insurance that consists of the delivery of life annuity money that will give you for life if you are a worker and you retire. If you die, the money is delivered to your beneficiaries. In this type there are two variants: those of the private initiative hired by the employee, and those of social security to which the worker has access by law.
Some of the advantages of life insurance are the guarantee of a patrimony for the beneficiaries in case the insured is missing, the protection in case of accident, illness or incapacity for work, the future profitability that can be obtained and its use as a short, medium and long term savings tool.
Major medical expenses insurance
Medical services are highly expensive and in view of this reality, it is recommended to have insurance for major medical expenses in order to meet the cost of a possible accident or illness, including medical, hospital and complementary services.
In insurance for major medical expenses, the cost is borne by the insured, that is, whoever contracts the policy chooses hospitals, doctors and laboratories that he wishes to hire to receive care. However, only the services that are integrated to the insurers with which you have an agreement can be chosen.
There are also the insurance of minor medical expenses that are preventive in nature and, where appropriate, the expense is managed by the insurer hired, defining who will provide medical care when necessary. This type of insurance covers consultations with first-contact physicians, specialists and laboratory tests stipulated in a policy.
In order to keep our house or apartment protected from eventualities such as fires, earthquakes, floods or robberies, there are insurances for the house. With this you can protect both the physical structure of the house and the contents of it as far as furniture and accessories are concerned.
The rented homes can also be insured and, as if that were not enough, this type of insurance also provides the possibility of contracting a civil responsibility coverage that responds economically to damages to other properties in the event of an accident. For example, if an earthquake occurs and your house collapses on another, your property and that of your neighbor is protected.
In addition, there is also coverage for robbery with violence and assault on the home, so that if this happens, both the decoration and furniture and appliances are protected and easier to replace.
It is not easy to make a car and when you buy it, it is an investment that you have to protect. That is why insurers developed auto insurance . When you have one, you can rest assured that your insurer will respond in case of an assault, accident or total loss.
There are different types of coverage, but it is essential that your insurance has the protection of people traveling with you in case of an accident and also, that covers partial or total material damage that the car could suffer after being involved in an accident.
Also, in case of theft, insurance can cover the amount insured by the vehicle, or they can help you cover the expenses that you could cause to third parties on your person or your assets derived from an accident.
Finally, and at best, car insurance also provides legal assistance or technical assistance in case your car should fail even in the middle of nowhere. That is why it is essential to have insurance if you have a car.
Remember that insurance includes payments, but these will sooner or later become an investment. If you hire a policy, you must fill out all the data correctly, from the name of your beneficiaries until you know what the deductible amounts are for each event. Remember to go to insurers legally constituted and with the best prices.
Or, should any other eventuality arise, consider hiring a loan to deal with the problems that may arise.