Securing your and your family’s future is a matter of utmost importance. Life is a set of illusions that we build over the years, with all our effort and dedication, thinking only of the best for us and for those around us.
Our home, our children’s studies, our family, maintaining this standard of living that we have achieved, are the important things in life that we cannot leave to chance. This necessarily implies a commitment to defend them.
However, as this commitment depends on our permanence in this world, we have the responsibility to protect them in case we should be absent, through mechanisms that ensure the continuity of our standard of living and, above all, that of our relatives, at least until they can fend for themselves or generate an income.
To ensure the future, there are social security benefits. The government offers benefits in case of orphanhood, widowhood and incapacity for work, but these benefits are only a percentage of the regulatory base of your salary.
Do you think these benefits will be enough to cover your family’s needs?
Social Security Benefits
Widowhood: As a general rule, up to 52% of the regulatory base. On special occasions it can be up to 70%. And in cases of more than one marriage, the percentage would be divided proportionally to the years of cohabitation with each of the different spouses.
Orphans: 20% per child until they reach 18 years of age (up to 22 years of age if their income is below the minimum wage or they suffer a disability of 33% or more). Bearing in mind that in the event of having several children, the widow’s/widower’s pension added to 20% for each child will never exceed 100% of the regulatory base.
Permanent Total Disability: If you are unable to carry out your usual work activity but are able to do others, you will receive up to 55% of the regulatory base.
Absolute Permanent Incapacity: In the event that you have an incapacity to carry out any type of work activity, you will receive up to 100% of the regulatory base.
Why life insurance?
Having life insurance is essential if we are the financial support of the family and we have debts, small children or dependent relatives. Life insurance offers financial protection to the family against the risks of death or disability.
In the face of any of these contingencies, life insurance allows you to obtain liquidity before creating it, and guarantees financial stability and that of your family members. The latter will be able to cope with your early absence or if you are unable to continue working due to a serious accident or illness.
Life insurance is a very powerful financial instrument, since its function is to assume the role of head of the family, as a provider of money, when you can no longer contribute. Other functions are, for example, to cover the costs of inheritance tax or to meet the costs of burial in the event of your death.
The decision as to which type of life insurance we should take out depends on our financial needs and the amount of premium we are able to pay. A person who has children or dependent relatives with a disability, who cannot generate an income on their own, will probably require lifelong protection with a high insured sum.
People who have a good habit of saving for their retirement and have children with ample developmental potential will probably require only temporary insurance.
The best age to purchase a life policy is now, when one is productive and in good health, as insurance companies evaluate the risk of insuring a person through a medical exam.
The younger you are, the longer your life expectancy and the lower your policy premium. That’s why anyone who has the financial capacity to do so doesn’t have to wait until tomorrow when an accident or illness prevents them, despite their intentions, from obtaining a life policy.
Life insurance works for everyone who is subject to risks, such as dying young when you are the main financial support of a household with young children, an unprofessional spouse or elderly parents; becoming unable to work at a productive age because of a serious accident or illness; or finally getting old and not having financial support to cover the needs of this age.
The importance of taking out life insurance
A life insurance is a financial guarantee, which covers your needs in the difficult situation in which the misfortune happens:
- It encourages savings and provides the necessary security and protection for you and your family in case of unwanted events.
- In the event of death, your family members will be able to enjoy a sum of money with which they can meet their needs, economic expenses and/or obligations throughout your life.
- It is part of a family estate that will become a financial legacy to help dependents financially, whether they are your children or your sick dependents.
- Improve the quality of life of the family nuclei.
- It is a long term investment in the welfare of those you care about most.
Peace of mind for you and your family
Financial protection: If you have taken out a life insurance policy, you will be able to protect yourself from the damage caused to those who depend on you financially. In case of death or disability, since bills, personal loans or any domestic needs are exposed in this situation.
Covering the mortgage: If you default and the mortgage is not paid, your relatives will have more economic problems added to a situation like the previous one.
Insure the children’s studies: Life insurance will not only pay the bills for a while in case you are absent, but it can also insure part of the future of your children, allowing them to have enough money to continue with their studies.
Covering serious illness or disability: In the event of serious illness or disability, with life insurance you will be able to move on, improve things and your quality of life.
There are many more reasons, but security and peace of mind are the most important.