Life insurance goes beyond death coverage: it all depends on the profile of the insured.
The mentality about insurance is still evolving. For a long time, the idea spread that the applied resource would only be useful for the family in the event of the death of the insured. However, there are insurances with life coverage and even redeemable insurance.
What is redeemable life insurance?
Redeemable life insurance consists of the merger of two products into one: life insurance and a financial reserve. In this sense, each insurer presents the insurance with its own characteristics, which must be researched by the interested party before making the contract.
What is the difference between redeemable insurance and normal insurance?
First, it is worth emphasizing that redeemable insurance has all the characteristics of traditional life insurance. In this modality, the objectives of life insurance are maintained, ensuring that the security and protection needed by the family are safeguarded.
The difference is that redeemable life insurance makes an application of the premium (monthly insurance amount) that you pay. Thus, it is like a capitalization bond with monthly investments. This nature of the application allows part of the amount to be redeemed later, after a certain grace period, enabling the use of life insurance by the contractor.
How to use redeemable insurance as a financial reserve?
Redeemable life insurance is purchased like any other. Once the policy is consolidated, part of the amount paid monthly is applied to a financial reserve.
However, there are some variations in hiring. It is possible to obtain a plan with a validity period for receiving the capital or to join lifetime protection, in which the customer defines when to redeem the value of the reservation.
In the second case, it may happen that the customer never requests redemption. With this, the plan will continue to be valid as traditional life insurance and the contractor will be able to continue with the tranquility of his protection and protection. On the other hand, it can be maintained only until a contingency situation arises or when coverage is no longer needed.
In both forms of acquisition, the insurance is extinguished as soon as the withdrawal of funds is made. The accumulated amount can be redeemed in part or in full, due to the conditions contracted and provided for in the policy. It is important to note that the redemption occurs at the initiative of the insured and not by the beneficiaries indicated.
So, redeemable life insurance is a mix between a family protection instrument and an investment for the insured. In addition, it can be obtained according to your prospects of redeeming the accumulated financial reserve.