What kind or form of life insurance is best?

Most life insurance marketed are of the type or Temporary Annual Renewable mode (TAR), and the reason is the price since the short term is more favorable. But like the other forms of life insurance that exist, the TAR has its advantages and disadvantages. In this article, we will thresh the pros and cons of each type of life insurance, so that when you hire, values addition to price, other equally or more important concepts:

constant or fixed capital

It is kept constant throughout the duration of insurance the insured capital. In the Temporary Annual Renewable mode (TAR), if we maintain fixed or constant capital, we will reduce the price increase in the following annuities.

Capital Decreasing

It applies only in the form of Life Amortization, and that capital is decreased or amortized at the same rate as the mortgage loan (hence the product name "amortization").

Prima / constant or fixed price

It is the most important to consider from our point of view parameter, even more than the price. Because with a constant premium you avoid future surprises price increase in insurance renewal, with the danger that entails, as could be the case, the insured had contracted a serious disease, and if to keep insured, not would have no choice but to accept the rise of renewal, since with a serious illness would accept no other company hiring a life insurance, introducing the "pre-existence" of severe disease. The problem is that we can be talking about increases of up to even 50%. This happens precisely in insurance Temporary Annual Renewable mode (TAR), the best sellers. Typically, each year in the TAR raise the price of insurance around an 8 or 10%, but increases at certain ages may be even 50% as indicated above. These radical increases may be reduced in some cases making business dealings with the company a year or two, but there comes a time that no longer accept more adjustments.

lifetime duration

Does not have an expiration date or term, ie, the insurance shall remain in force until death occurs, although this originates, for instance, to 105 years.

custom duration

The conditions that offer this option calculated the cost of insurance among other variables, for the duration of the contract. Each company offers a maximum output of age for coverage of death, which the product can be up to 80 years, and all agree disability cover the maximum to 65 years.

Rescue possibility of premiums paid

It is an advantage, because if the years pass, and no longer need life insurance or financial trouble arises you, you can recover much of the premiums paid.

Real example:

    An insured hire a whole life insurance, and after 25 years for economic reasons decides to rescue.
    € 2.846,82 constant premium x 25 years = 71.170,50 € (without applying profit sharing of 25 years, which would increase the available balance).
    50.647,74 € is the maximum redemption value you can make, so you really have paid insurance for 25 years = € 71.170,50 - 20.522,76 € 50.647,74 € =

Possibility of future changes to capital or hedge

In those embodiments that allow it, the changes are implemented using a free supplement, keeping the same contract / policy. Those procedures that do not allow it require you to hire a new life insurance with the completion of a new health questionnaire, so if at the time of wanting to make the change, do not enjoy good health and have "serious pre-existing conditions" you accept the insurance premium surcharges / fees or you deny it, two things can happen.