First, what is GOOD life insurance and how do you know if it’s right for you?
In fact, a good life insurance policy could be defined as a policy offering the owner and the beneficiary optimal protection of capital, assets, and liabilities in the event of the death of the owner.
Well, that sounds very technical as a definition, but basically what it means is that it’s life insurance that takes into account YOUR financial situation, your accumulated debts upon your death, as well as the assets that you want to protect.
For example, at your death, you will have funeral expenses that need to be paid for your burial, ceremony, etc.
Then, you may have assets with deferred tax payable. We can think, among other things, of a chalet that you wish to bequeath to your children, and which has increased in value over the years. In the event of your death, you will leave your heirs with tens of thousands of dollars in tax liabilities if you do not have enough insurance benefits to cover that amount.
Eventually, over the course of your life, you will incur debts such as a mortgage which you will need to protect with life insurance. For example, with mortgage life insurance, in the event of premature death, your insurer will remit a sufficient amount to your beneficiary so that he pays the balance of the mortgage with some cash left over, depending on the type of insurance.
To cover all these risks, there are two types of insurance, which we will present to you in detail.