One of the most common reasons to compare life insurance is to replace the loss of income or revenue suffered by the family in the event of your death.
Once you die and checks stop arriving, the family may be left with very limited resources. The proceeds of a life insurance policy do you have enough money to support the family almost immediately death occurs.
Life insurance also used to pay any debts that have commonly left open. Life insurance can be used to pay mortgages, car loans, credit card debts, leaving a remaining principal debt free for your family.
We often used also to pay some taxes and final expenses. Finally, life insurance can create respectable capital for your heirs. How much insurance you need?
Your life insurance needs depend on a number of factors including:
- if you are married or not,
- the number of family members,
- the nature of the financial obligations,
- stage of his career and
- Their goals.
Have you heard of marriage insurance? Check this article: Can Marriage Insurance protect a marriage? For a couple the mixed contract is a boon because whatever happens in the future insurance financially help the couple. For example, if the woman dies couple widower and children will receive a capital and it is the same if the husband dies before the contract expires. Certainly this is not something to wish to see her husband leave the world of the living. But in addition to the human tragedy that it can cause, it can quickly turn into a financial drama. If the couple agrees that the mixed life insurance contract will expire at the end of the contract then it will benefit from a capital thus also allowing him to spend more or less retire happy but in all cases will turn.
Basically, the life insurance contract is a mixed gem able to satisfy everyone. But it was without counting on human nature and unscrupulous insurers who abuse the system eventually destroy it.
The insurer, which sometimes shows a little too greedy, understood that the Joint life insurance policy could quickly become a great way to get rich. The insured pays a large portion of their insurance premium in the year during which he endorse the contract. The insurer has the time to see it coming because with this type of contract the refund will be delayed in case of death or within even longer time when life.
If the insured does not pay the insurance premium for the first three years, the insurer could then cancel the contract and repay nothing to its insured. This is why insurers have tried to sign insurance contracts mixes lives to the greatest possible number. The amounts are substantial and in addition it is possible, with a little luck the insurer can benefit from the insurance premium the insured nothing to do to repay.