The main types of insurance in the market

The main types of insurance in the market

It is convenient to have cleared the necessities at the time of contracting a life insurance. A life insurance is a personal insurance that comes to offer coverage on the risk of death of the insured, in the case of death, or survival at the end or expiration of the policy contracted in case of life. The objective of a life insurance is to guarantee the beneficiaries of the insured an economic amount after fulfilling the contracting conditions.

There are different types of life insurance that are designed to meet certain needs. The best thing to do is to know which type of insurance best suits our situation.

Temporary insurance

The insurer is obliged by the insurance contract to pay a specified sum if the insured dies within a specified period of time, from a few days, several years or up to a certain age. But if the insured suffers no harm during the period, the insurance company will not have to pay the compensation.

This life insurance has the advantage of being very economical for people of young ages, but the drawback is that it is very expensive for the elderly.

In addition, the premiums, or disbursement to be made by the insured, can be:

  • A growing premium, renewable: each insurance annuity varies according to the age that the insured is reaching, according to the evolution of their mortality rate.
  • A leveled or constant premium: in which the amount has been determined so that the policyholder pays in the first years a premium higher than that which would correspond to his age and pay less than what would correspond when due to the passage of time the insurance becomes more expensive.
  • A decreasing premium: In those cases in which the main purpose is to cover the amortization of loans, the beneficiary will be the Banking Entity and the insurer covers a capital pending amortization by the insured.

Whole life insurance

Here the insurer is obliged to pay a capital on the death of the insured without taking into account the time of death. The consideration can be in the form of income or capital. Life insurance guarantees the insured capital for life. It has a high risk component, but since it is true, the benefit also has a savings component.

The purpose of this type of life is to provide the family or the person designated as beneficiary with capital that can compensate for the loss of income due to the death of the insured, provide the heirs with capital that allows them to meet the costs of transmitting property. or guarantee the payment of debts or mortgages without having to resort to the rest of the inheritance.

The premiums, or disbursement to be made by the insured, can be:

  • A lifetime bonus: paid up to the time of death
  • A temporary bonus: the payment of the premiums is made for a specific period (20 or 30 years) but the insurance coverage is extended until the death occurs.

Of course there are many types of differentiated insurance, and we all know. But also within life insurance or associated in one way or another to these we find insurance with its own entity. In this case we will review at least three of these modalities because they are the most common and their presence, in some cases has been very remarkable in terms of growth in recent years.

Savings Insurance

The insurance savings are one of these widespread and appreciated by the saver products. Generally, they are insurance savings for survival or retirement cases, and as an object the capital raising was marked at the end of the agreed period.

The aforementioned capital is made up of the user’s portfolios plus a profitability agreed in advance. It is a product that is oriented to medium and long-term investments to be able to complement retirement benefits or, to obtain a capital plus deferred future performance with the objective that the user is marked.

We must point out that these products, with a similar taxation to savings products guaranteed to use, are not liquid products, that is, they are not products that respond to the good before the rescue attempt before its expiration period. This occurs because it is a term product that penalizes its previous rescue.

In any case, an interesting product for those who want to complement, for example, their pension plans in the future, or simply for those who want to save with guarantees in a product directly associated with life insurance.

Mixed Insurance

This is insurance perhaps less known but no less interesting for profiles that may be comfortable within their coverage.

By definition, an insurance policy is one that links risk insurance with savings insurance within a single policy contract.

In this way the insured has to obtain coverage in case of death but also provides a benefit in case of survival at the age specified in the contract, the first case, the death, are the beneficiaries of the insured who receive the coverage in the form of benefit.

Rent Insurance

Rent insurance has different proposal models, although, generally, what they propose is the contribution of a public capital, a single premium payment during a certain period.

Combined and framed within life insurance, the insurer is guaranteed a life annuity, or, failing that, a temporary income.

  • The annuity what it proposes is the payment of specific amounts from the expiration of the insurance and while the insured lives, the amount of these sales can be fixed or variable.
  • The temporary rent for its part and as its name indicates what it proposes to us is to receive an income prefixed in advance for a certain time.

These insurances are usually associated to a large extent with the complement of the pension plans or very destined to be rescued at the time of retirement, since they can serve as an excellent complement to the public retirement pension and that the user does not lose competitiveness in terms of referential salary during his work performance.