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Life Insurances An alternative to invest or create a financial strategy

Broadly speaking, life insurance can be understood as a policy or contract in which installments or payments of a specific sum of money (premium) are established,for a certain time in order to obtain protection or greater security financial against risks, accidents and death; however, life insurance in the United States it also represents an excellent financial strategy since depending on the type of insurance chosen.

It can become a source of savings or investment, which ensures less impact and uncertainty than in the economy can generate the face of some incident or calamity.

According to the Las Américas newspaper, in its October 2013 publication, Hispanics they are the ones that have less life insurance in the United States.

Credit cards and the study or training of their children, respectively; case contrary to Americans who culturally have naturalized the acquiring policies to ensure not only your life, but also your assets family, as a habit inherited from American financial behavior.

Now, to know what life insurance you should choose, it is necessary to identify the types of existing insurance, since knowing the main characteristics of these policies will allow you to find the option that best suits your needs, what which is essential to obtain the best guarantees for both you and The possible beneficiaries.

Life insurance can be classified into two large groups: fixed term life insurance and permanent life insurance policies. Term Life Insurance: generally the life insurance policies of Fixed term tends to be less expensive than permanent life insurance, since they are only valid for a specific period of time, which can go from one year (annual), or from five to thirty years (level), but in general this type of policies is recommended for young people who are starting a family.

Academic life or the purchase of a property and do not have the ability to Purchase more coverage, this type of insurance offers a more affordable alternative due to its low investment cost and because companies do not notice a potential high risk.

One of the advantages of this type of policy is that premiums or quotas remain stable, a disadvantage could be that the fact that this type of policies does not include a cash value or a savings component since this will only be effective if the death of the person within the term or term of the policy, unlike life insurance permanent.

Temporary Annual Renewable Term Policy: as It is indicated by your name, this policy provides coverage for one year and is renewed annually. – Level Term Policy: the term of the contract is made from 5, 10, 15, 20, 25, 30 or more years. The premium or fee does not change over time that the policy is acquired.

Permanent Life Insurance They provide full coverage, so the premium is much higher, without However, age is a determining factor when acquiring this type of policy permanent, because the younger a permanent policy is acquired, the lower it will be the amount of the premium in relation to a middle-aged person.

Worth noting also, that this is an excellent alternative, as well as guarantee Lifetime coverage there is the possibility of savings, retirement and investment. Within this type of policies we can find several options: – Ordinary Life Insurance (Whole Life Insurance): they are valid during throughout his life, unless the value of the policy is withdrawn or is breached by the premium cancellation.

-Universal Life Insurance: these insurances allow you to modify the amount of the premium, death benefit or cash value at any time, as they are more flexible than ordinary life insurance.

Unquestionably, acquiring life insurance must be a process that is carried out in consciously, analyzing the alternatives that best suit the needs, objectives, beneficiaries and of course the financial capacity of Every individual, not all people need life insurance, but all People need to plan a financial strategy for life.