Have children? Have you thought about what would happen if you died tomorrow, they could continue with their lives having financial peace of mind? If your second answer was “no”, you should consider taking out life insurance as one of your priorities. This financial instrument is used to financially protect your dependents the day you are absent or suffer an accident that causes partial or permanent disability.
“The amount of the insured sum is calculated based on the monthly expense that your family has, their tastes, the years that your children have left to finish their studies and your possibilities to pay.
Leaving the decision to hire him for later only puts your family’s financial stability at risk. While you decide, you should know the following:
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Get informed
Mexicans do not believe in insurers for three reasons: 1) after the economic devaluation of 1993 -when three zeros were removed from the peso- investors’ savings were diminished and many had to supplement their savings because neither for flowers or the drawer reached them; 2) the agents do not make a good analysis of the client and sell them the wrong policy and 3) because people give more importance to insuring their material goods than their own lives.
Unfortunately, says the expert, the best-selling life insurance in Mexico are those with an insured sum of $100,000, an amount that in 20 years would yield 1.8 million pesos at a 3% rate of return. With this product, the monthly payment that the beneficiary would receive would be 7,791 pesos. “Insufficient to support a family.”
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UDIS or dollars?
A life insurance in Investment Units (UDIS) -which have an approximate value of 5.4 pesos-, with an amount of 100,000 UDIS of sum insured, in 20 years with a rate of 5.4%, could be equivalent to the end of the term 5.4 million pesos.
This product is the best option, suggests the specialist, since the value of the UDI is updated in relation to inflation, in the same way the premium grows. But the final amount will always be higher, instead due to the fluctuation of the exchange rate, a life insurance in dollars can have losses when withdrawing the money.
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Speak the truth
Life insurance is a contract in good faith, if you omit information or make inaccurate statements, the insurer has the right to cancel the policy in the first two years of contracting. After two years of contracting the insurance, the beneficiaries will be paid without pretext, even if it is suicide, according to the Insurance Contract Law.
“If the insured lied in his declarations when he contracted the policy, he will not be paid if he is discovered and his death occurs before two years of contracting the product. It does not matter if the omission had to do with the cause of death or not, it will not be paid,” said the adviser. In addition, if the insured participates in any illegal activity such as drug trafficking, money laundering or organized crime, the policy is immediately canceled, without the return of premiums.
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The money is yours, not theirs
Insurers contribute part of the capital with which they deal with the claims they insure; however, most of the resources they manage are the premiums that policyholders pay.
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Choose the one that best suits your possibilities
There are three types of life insurance: the temporary covers the insured for a certain period and if he dies during that period, the insured amount will be paid to the beneficiaries. But if the person is still alive at the end of the period, nothing will be paid.
Total insurance has an investment component. At the end of the term contracted for the protection, if the insured did not die, the agreed amount will be paid, plus the income generated.
For its part, ordinary life insurance is one that covers the insured up to 99 years of age. Upon his death or reaching that age, the beneficiaries receive the money. The advantage of the product is that the whole life of the person was protected.
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Give it a first and last name
The beneficiaries of an insurance policy can be changed as many times as necessary, free of charge. Make sure that they always coincide with those stipulated in your will.
Currently, life insurance protects the couples (married or not) of the insured, regardless of whether they are of the same. To make the claim for the money, they only have to present themselves with an official identification.