How To Choose The Best Life Insurance? 2021 Update Tips

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Is the best life insurance the most expensive one?

Not always.

Is it the cheapest?

It is also not possible to say.

The person interested in having the best life insurance should think about necessity and cost-benefit.

From this, you can then choose which policy is, in fact, the best one for you.

See below how to choose the best life insurance.

How important is life insurance?

what is supplemental life insurance
what is supplemental life insurance

Life insurance is a guarantee of security and tranquility.

Many people who are already familiar with it place this resource as the basis of their family financial planning. After all, it ensures that unforeseen events are managed without despair.

In times of difficulty, the family will be financially secure and will be able to get back on its feet.

That is why it is important to think about the best life insurance before we need it. We show you below the 4 main steps in choosing the best one. Check them out!

How to choose the best life insurance?

1. Know the main terms

In any insurance policy, the interested party will see terms and concepts that may be unfamiliar.

However, they are of fundamental importance, since they are included in the policy, which must be thoroughly evaluated. They are

  1. Premium: amount paid to the insurance company (usually monthly) for it to assume risk (the higher the risk, the higher the premium).
  2. Grace period: a period in which the insurer is not yet responsible for the payment of compensation.
  3. Policy: document or contract that states all the insurance conditions.
  4. Coverage: types of risk to which the insurer provides support.
  5. Term: a period of validity of the contract guarantees.
  6. Loss: event or damage was foreseen in the policy.
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2. Evaluate the coverages

The best life insurance is the one that meets your needs, right?

For every need, there is more appropriate coverage. Therefore, you should evaluate what they are.

The most popular covers on the market include:

  • Indemnity for serious illnesses, such as cancer, Alzheimer’s, among others;
  • Compensation for permanent total or partial disability due to an accident;
  • Compensation for permanent functional disability due to illness;
  • Inclusion of spouse and/or children up to 21 years old;
  • Special indemnity for death by accident;
  • Reimbursement of Extraordinary Expenses;
  • Discount on medication;
  • Death by any cause;
  • Funeral assistance;
  • Basic food basket.

The interested party can merge several coverages to have the best life insurance.

3. Analyze the financial impact of life insurance

After gaining a better understanding of coverage, it is necessary to analyze the financial impact of life insurance on your budget.

Let’s assume that your fixed and variable finances are under control. So, we can imagine that life insurance, in general, fits into your budget.

The amount of the premium, however, is set by each insurance company, which considers the coverage and even the age of the policyholder.

On average, you can get insurance with very affordable values, starting at R$20 a month.

The best thing to do is to ask a broker for help so that she can bring the best quotes for you.

4. Choose reliable insurance companies with the help of an insurance broker

The last step in choosing the best life insurance is to have the help of an insurance broker.

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Many people fall into a real trap when hiring insurance. There are companies that, unfortunately, do not offer good support or are not fair to their clients.

Therefore, be suspicious of those that do not provide any information about insurance.

To avoid any mistakes, it is interesting to count on a brokerage company to choose the best life insurance.