In Norway, the number of people who decide to choose life insurance is still very low. The explanation is simple: nobody likes to think of the worst or thinks that they are immune to unfortunate events. We only think about the insurance when an accident has already happened, but by then it is already too late. This type of insurance is essential because they are part of financial planning, whether personal or family, which will not really let you down if, for example, you suffer from an accident and can no longer work.
The importance of life insurance
Have you ever thought about the importance of life insurance? Well, many people believe that this is an unnecessary investment, but the situation is not quite that. Before we explain why it’s so important, let us tell you a bit about what exactly it is and what types of insurances there are, you can also see details of life insurance here.
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
an unforeseen harmful event (claim) in the form of a payment
(premium).
What
is life insurance?
Generally
speaking, life insurance is a type of financial indemnity that you
pay monthly. The amount accumulated during the entire payment period
is intended for family members in the event of the death of an
insured person. This type of insurance can be contracted individually
or collectively and depending on the plan chosen, additional coverage
can be added. In Norway, you can easily find it online. Our
recommendation is LOCALMARKET.
Importance
of Life Insurance: Types of Coverage
Death
insurance is the most desirable type of insurance, but there are
several types of coverings. See what they are:
– Accidental
death: compensates the beneficiaries in case of accidental death of
the insured;
– Permanent Total or Partial Disability due to
Accident: if the insured person suffers any type of accident that
affects the partial, total, definitive function of a member or organ,
he will receive compensation after hospital discharge;
– Total
Permanent Disability due to Accident: in situations of total
disability, the insurance contractor will receive full
compensation;
– Total Permanent Labor Disability due to Illness:
in this coverage, the person receives the amount invested when it
shows the labor disability, that is, the impossibility of carrying
out professional functions;
– Medical, Hospital and Dental
Expenses: in cases of medical expenses, the insurer returns the right
amount of money according to the insured’s capital, upon presentation
of the invoice;
– Serious Illnesses: for serious illnesses
included in the contract signed by the insured, the indemnity is
guaranteed;
Traditional
life insurance
The
value of life insurance is defined by the term of the policy. In
order for you to understand the importance of life insurance, you
need to understand the difference between traditional and temporary
insurance.
Traditional life insurance offers the insured a
lifetime coverage, but it is only valid as long as the monthly
payments are paid. As soon as the payment is stopped, the insurance
is automatically canceled and there is no possibility of recovering
the amount that has already been paid. Money can be refunded only if
a contractual policy is concluded. In this insurance, the value of
the premium may or may not be adjusted according to the age of the
contractor.
Temporary
life insurance
Temporary
insurance has the same benefit as traditional insurance, the
difference is that it has an expiration date already determined and
has a lower cost. Normally, it is indicated for younger people who,
until now, do not have assets and do not have so many resources to
pay the premium.
Why
should I choose life insurance?
The
importance of life insurance has some basic objectives, which include
property and financial protection. They guarantee the tranquility of
your family in the event of death or accidents, that would make it
impossible for you to perform your work duties or day-to-day tasks.
Before
choosing your life insurance, it is necessary to analyze your
standard of living, in order to find a plan that fits your family’s
standard of living and your needs.
