What is the insurance of life? Basic life insurance guide

Start understanding life insurance with our Beginner’s Guide, so you can later compare prices and coverage to find the best deal for you.

Do you remember the first time you cradled your first child, or walked through the door of your new house?
What did you feel?

For many of us, the answer to this question would be “joy.” However, for many others, it would be “panic or fear of the unknown.”

And the weight of our responsibilities can become a significant burden. It is for these reasons that life insurance becomes a powerful solution that provides you with the greatest peace of mind. And if something happens to you, your family will be protected.

However, the world of insurance can be complex and it is not always easy to find out which coverage is the most appropriate for each person or which companies you should contract it with. We invite you to continue reading and clear your doubts.

If after reading our articles your question has not yet been answered, we recommend that you speak with an expert advisor at Eresto.com to receive professional and impartial advice free of charge. Simply call 91 435 90 96 or request a call back through our website.

The purpose of risk life insurance is the financial protection of a beneficiary in exchange for a premium. It is a contract in which there are four parties:

What is the insurance of life?

  • The policyholder: He is responsible for paying the insurance.
  • The insured: Who may be the same as the policyholder, and who is the person on whom the life insurance is contracted?
  • The beneficiary: This is a third party freely designated by the insured, who will receive an insured capital if the insured dies.

The insured is obliged to pay an amount (premium) annually to the insurer, and the latter is obliged to compensate the beneficiary if the insured dies or suffers a disability.

What is the right life insurance for me?

If you are wondering what type of policy is best for you, you should analyze your circumstances and ask yourself the following questions:

Are there one or more people who depend on you financially?

In the hypothetical case of becoming disabled, would your family members be able to cover all the expenses?
Are you paying a mortgage loan with your partner?

If you have answered Yes to any of these 3 questions, we recommend you take out life insurance through PuntoSeguro.com

How much capital can I insure?

We know that it can be difficult to calculate how much money your loved ones may need if you die or become disabled. We explain the points that you should take into account:

Do you have any outstanding debt or charges (mortgages or loans)? Add this amount to the insured capital.
What percentage of the annual income do you contribute to your family’s economy? The more they depend on you, the more you should insure.

If your income is the only one in your home and you have non-emancipated children, we recommend that you insure at least 5 times your annual net income.

Does your family have additional sources of income, such as real estate or shares on the stock market? In this case, you can subtract this amount.

The essential thing is that the total amount you insure serves to pay your children’s expenses while they remain dependent. However, the higher the insured capital, the higher the premium to pay, so it is important to find a balance between the need for protection and the affordability of coverage.

If you are only interested in covering a specific event, such as funeral expenses, it is better to only take out death insurance, since although this coverage is already included in many life insurance policies, risk life insurance is another product. complete and therefore less economical.

Finally, if after reading this you think that you do not need coverage because you do not have a family dependent on you, it seems perfect to us, but even in this case, it may be interesting to contract it to be protected in case of disability or absolute permanent disability.

How much does life insurance cost?

Today, life insurance has affordable prices within reach of all budgets. We invite you to try our insurance comparator and let yourself be advised by one of our experts.

How much does the price of life insurance increase each year?

For each year of the life of the insured, the price of the insurance increases by an average of 8% when the capital is constant, that is when the same amount is insured each year.

In cases in which the decreasing capital is insured, that is, each year only the amount that remains to be paid on the mortgage is insured, the increase in the price will logically be lower and will depend on the amount that has been amortized that year.

It may be the case that the price of the insurance remains the same or even decreases despite the increase in age. In some insurers, it is already possible to know what will be paid in the next 5 years.

How can I pay the minimum for my life insurance each year?

The best way to keep the price of insurance low is to compare different insurers each year so you can make sure you are not overpaying. Furthermore, if you have life insurance with the bank, you should know that on average it is 40% more expensive than the insurance we offer in the Comparison of life insurance for mortgages.

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