In Brazil, the number of people who worry about taking out life and personal accident insurance is still very low. The explanation is simple: no one likes to think the worst or thinks that they are immune to unfortunate events. We only think about the accident when it has already occurred, and by then it is too late to consider the thankless question “what if?”.
These types of insurance are essential because they are part of financial planning, whether personal or family, which will not really let you down if, for example, you suffer an accident and can no longer work. Or that it will allow your family not to suffer if you, who are one of the providers of the house, die.
We prepared today's post to help you understand the importance of life and personal accident insurance, highlighting the differences between them. Follow the reading and find out about it!
What is insurance?
An insurance is a contract between two parties, in which one of them (insurer) is obliged to indemnify the other (insured) in the event of any unforeseen harmful event (claim) upon payment of a sum of money (premium).
We are exposed to different types of risks every day of our lives. The idea of ​​insurance is precisely to manage risks in order to avoid them or reduce the damage caused by them. Whoever takes out insurance actually transfers these risks to the insurer and pays an amount to have the security and peace of mind of being compensated in a time of misfortune.
To avoid surprises, we generally reserve our budget, which we allocate for extraordinary expenses. But, depending on the unforeseen, these emergency reserves may not be enough. Imagine, for example, that you had an accident and were unable to work for a long period of time. In an hour your savings will run out and will no longer cover your spending. For these types of contingencies, transferring the risks to the insurer is the best way to protect yourself and avoid headaches in the future.
Why is it important to hire life and personal accident insurance?
Many people value their material assets and take out insurance for cars and other assets and fail to protect much larger assets, which are their lives and the lives of their families. So, know what are the main reasons why you should take out life and personal accident insurance:
Financial planning
Insurance protection allows that, in the event of an eventuality occurring with you or your family, your dependents do not need to dispose of assets, harm your daily needs or give up on dreams and future plans. Your family will be able to maintain the same standard of living as before and will not have to worry about financial problems.
Security and peace of mind
It is much better to lay your head on the pillow and think that you and your family are financially supported than to imagine that, suddenly, you can lose everything you have achieved. There is no point in investing your capital and building equity, if there is no minimum security for these investments. Insurance brings peace of mind to difficult situations, in which money will most likely be the last thing you want to think about.
It is important to highlight that it is not any type of accident that the insurance covers. When hiring, the insured must pay attention to these clauses.
Life insurance, on the other hand, has much greater coverage: it protects the insured and his beneficiaries in the event of accidents and natural deaths.
Value
Because they have much broader coverage, life insurance is more expensive and takes into account the age of the insured when calculating their installments. The older you get, the more expensive life insurance will be. On the other hand, young people pay installments more on account.
Now that you know better the importance of life and personal accident insurance, how about simulating yours?