Insurance

Life insurance is an essential product for family protection, priced, more accessible but no longer a major expense for families. Therefore, there is often the temptation to have a small, insufficient coverage in case you need cash it. This is especially relevant if you have debts, especially mortgage, that may be impossible to pay the remaining income to the household after the death of one of its members. On the opposite side is secured have capital well above what we need, by paying a significant despite being a completely unknown quantity risk. Therefore, it is very important to analyze the amount to be covered by our insurance to fulfill its protective function perfectly without being a burden on our pocket, but the work is not easy.

If we cover such a good as a car, a house or any property, we do on a known value and calculated. With life insurance it is not as direct. There is a part of most direct coverage estimate, which corresponds to the hypothetical household debts, but there is another, the most important in most cases where there are other variables to consider:

If you have a mortgage: In theory, we should cover the outstanding capital belongs to us but adapting to the actual payment. For example, if one's salary is 80% of household income, we must raise the percentage of total debt to cover with life insurance up percentage. For questions about insurance and mortgage loans, it is very useful questions to our independent experts in this forum iAhorradores.
Margin according to the salary of the insured: In addition to covering all debts, we must increase the capital by a higher amount. After the death of a family member that provides income, many expenses are kept and others just decrease so that an imbalance between income and expenses is generated. To fix this, it takes a while for both redirect expenditure, trying to adjust downward while attempting to increase revenue. While this happens it is recommended that the insurance will cover a minimum of 2 or 3 years of income, if we can up to 5 years.
Specific family needs: The amount we secure should not be a fixed amount. One of the expenses that change over time is the protection and welfare of children, especially in safeguarding their studies. For example if they are to meet senior or graduate studies. Increase coverage of life insurance is cheaper than doing it with a specific insurance for studies.
Adjust the risks to each member of the family unit: There are many cases where life insurance is only one of the family members is a clear error. If the couple, both members work and contribute their salary to cover expenses should each hire their life insurance coverage that follow a specified in the above points.