Why do you need health and life insurance?

Why do you need health and life insurance?

We often use the term “health and life insurance”. However, what do these words mean? The article answers this question.

1. How do you earn income? Most people live on the money that they earn by their labor. It is important to understand that you need to work for this income. Whether you run your own business, or work for self-employment – income generation is determined by your work. And in order to work productively, you need to be alive and healthy. However, there are events that may harm our ability to work. It can be a disease, or an accident. If this happens, the person loses the ability to work. And as a result, it loses the income that it could have received while remaining healthy. Thus, problems with health and life bear the risk of economic losses for us. And sometimes they can be very large. After all, if the breadwinner gets a disability, or passes away, then the family will lose all his income for dozens of future years. And in order to protect themselves from these large financial losses, mankind came up with personal insurance. Download an overview of life insurance solutions available in Russia:  

2. Life insurance (SJ) There are two main events in the contracts of the LJ as a result of which a payment is made. This is death or surviving to a certain age. What’s the point of this? If a person leaves, then the family loses his income. And if this happens to the breadwinner, then the family remains in an extremely difficult financial situation. How to repay debts and raise children? To protect against this risk, use SF. If there is a policy, the family will not be left without funds – since it will receive a large insurance payment. With these funds, the family will be able to repay loans, live normally, and give children a good education. It is especially important to have breadwinner protection for those families with small children. And who have serious financial obligations. Such as mortgages – or large consumer loans. And why do we need “survival”? This is also logical. For most people, disability is their only asset that brings them money. But with age, this asset deteriorates. And the day comes when a person stops working. At this point, he really needs capital. The rent from this capital will replace the income that he previously earned with his labor. This is the survival. Being young, a person opens a funded insurance contract. He determines the term of accumulation himself – for example, up to 60 years. And when he reaches this age, there will be a survival. At this point, the contract will be completed and the person will be paid the created capital. Using these funds – he will pay for his needs, no longer working. Therefore, in many countries, people use funded insurance programs to create their retirement capital. Similar insurance plans are also used for savings for some major purpose. Or to an important event – for example, to the 18th anniversary of the child, or to his wedding.

3. Health insurance (SZ) NW includes events that do not deprive a person of their life – but harm health, and prevent them from working. It: disability, hospitalization, diagnosis of critical diseases. 3.1 Additional options in the LJ Often, insurers in their policies add SZ programs to the main risks of death / survival. That is why we use the term “life and health insurance .” Think about it – this is very logical. Such a contract fully protects the main asset that brings you money. And what could be causing health problems? Accident or illness. However, not every disease is covered by insurance. Typically, supplementary programs in SJ policies protect against accidents, fatal diseases, or disability due to illness. But diseases that pass quite quickly are not covered. For example, if a person became ill with a sore throat, or spent a week in a hospital in connection with appendicitis, then payments for such events are not provided.

3.2 Deadly Disease (POPs) Critical diseases can be distinguished in a separate group. Indeed, such diseases carry a high risk for life, and their treatment is very expensive. And therefore, protection against this risk is an important part of personal financial planning. Think about it – after all, if a loved one gets sick with a deadly disease, the family will spend all their savings for its treatment. And instantly lose those assets that were created over the years. To protect against this risk, you can use additional programs in the contracts of the LJ. However, specialized insurance products designed solely to combat deadly diseases would be a more effective solution . These contracts require very high coverage, and the ability to choose the best global clinics for treatment. An overview of such a plan can be found here .

3.3 Medical insurance (MS) Most often, MS is understood as reimbursement of expenses for medical services. This is a compulsory medical insurance service, and voluntary medical insurance. This is a rather specific area, not directly related to the topic of this article. We all need to take care of our health. And this requires periodic visits to doctors. MS allows the family to pay, and to a reasonable extent, optimize these costs.

4. How to choose a policy? If you need to choose insurance, first get acquainted with the various types of policies that are available on the market. My short pdf review will help you with this.

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