Personal Risk Coverage (death and disability)

Most people link the idea of life insurance to the cover engaged in case of death, and this is a subject nobody likes to talk, let alone, worry about. In Acapital when the subject of life insurance is brought up, we think basically on life + disability, and we stress insistently within the latter concept. The problem is not death, the problem is how people survive, the overall physical condition of the person.

Because of major advances in the emergency services and in medicine in general, most accidents do not end in death; however many of those people who survived accidents end having different degrees of disabilities, brain damages, in a coma state, paralysis, etc; those people, all of a sudden, become a significant burden to their families.

Statistics state that for each person who dies in a traffic accident, three people survive with disabilities for life. In case of death, the life insurance engaged helps the family to get through: the person deceased does not bring a salary, but does not bring a cost either. When somebody has a disability consequence of an accident, it causes a double problem: the person affected fails to contribute with a salary – maximum a disability allowance- and this person causes a significant cost. Therefore, it is very important to have complete disability coverage.

Life insurance has become an essential instrument in the financial planning of any investor - even for those who apparently seem not to need it – either if the income is mainly generated by labor income or by capital income. However, the meaning in each situation is different.

Whereas in the first situation (labor income) the life insurance engaged protects the family well-being and ensures the maintenance of the specific standard of living the family is used to, in the latter (capital income), it helps to pay the expenses arising during the execution of the will or else, provides a boost in order to cover and meet the expenses for a certain period of time, preventing the hasty selling of the assets which provokes the consequent patrimonial loss and therefore enabling the sell out of the assets slowly and with enough time in order to maximize income for the sale.

This is a subject people do not like to talk about. However it is very important and worth facing such subject, just once, and make a planning of the potential needs. Once these potential needs are established, it is better to leave their coverage in the hands of a professional who will guarantee that said subject is not brought up again.