The only certainty we have in life is that we will all die one day. But nobody knows when and how. There are various reasons for taking out a life insurance policy. Usually one contracts a life insurance for a mortgage, but also to leave your family without financial worries in the event of death.
Types of life insurance
For a mortgage, life insurance policy is usually taken out for the lifes of both partners who have a financial debt with the bank. This ensures that in the event of death, the other partner does not have to pay the monthly charges based on two incomes. In some cases it’s the bank who requires life insurance, but even without this obligation, it is highly recommended.
There is often one main breadwinner in the family. If he or she unexpectedly fell away, it would not only be an emotional shock to the family, but would also be a major financial problem. Certainly if children are involved, it is advisable to take out life insurance policy to leave your family without financial worries, assuming the worst.
In conclusion, one can take out various basic coverings and several sub-coverings within the life policy. The life insurance policy itself is mainly meant for the surviving relatives, but what if the insured does not die but becomes incapacitated for work and is no longer able to work. In this case it is particularly nice to have supplementary occupational disability insurance. This cover is for the insured person.