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How important is life insurance?

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.

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