The primary aim of life protection is to support your loved ones in case anything happens to you. However, there is room for more. For example, you can use some types of insurance to save up for your child’s education or add a little bit extra to your pension.
Usually people think that the only condition on which the insurance company will pay out is in the event of the death of the insured person. That is indeed the case with straight-up, classic life protection – however, there are other options, such as compensation in the event of illness or trauma. This type of protection means your family will not suffer from loss of income while you recover, or if the compensation is substantial but not entire, you will not be dealing with an utterly unbearable burden.
In such cases, you can choose the size of the payments that you will receive, the duration of the coverage, and some possible risks against which you would like to insure. The company manager will then calculate the instalments you will have to pay. These typically vary from company to company.
It could also be a good idea to insure your debt, for example your mortgage – so that, should anything happen to you, your family would not have to be liable for your debt. If you choose a product like this, the insurance company can be instructed to pay the lender directly.