Cost of Living
Interview: Does your life insurance protect your family in case of death, disability, or serious illness? Or does it only protect the bank?
Bank-linked life insurance frequently only settles mortgage balances, leaving other essential household living expenses unprotected in the event of income loss from disability or illness. Necessary coverage requires calculating total family expenses to determine the required capital beyond mere debt repayment. Prospective policyholders must scrutinize specific illness definitions, disability criteria, waiting periods, and policy exclusions before contracting any insurance.
Why it matters
If you have a mortgage-linked life insurance policy, relying solely on it may leave your family financially exposed; you should evaluate if your coverage is sufficient to cover living expenses beyond just the bank loan.SIC NotíciasRead original ↗
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