• About us
    • Who we are
    • Mission
  • Contacts
  • English
    • Português (Portuguese (Portugal))
    • Español (Spanish)
    • Français (French)
  • Login
  • Register
Investorpolis
Advertisement
  • Home
  • Investing Series Guide
    • All
    • I. Goal Based Investing
    • II. Compounding & Inflation
    • III. Assets Risks & Returns
    • IV. Efficient Diversification
    • IX. Sustainable Investing and ESG
    • V. The Investor
    • VI. Assets and Investments
    • VII. Index Funds
    • VIII. Successful Investing
    • XI. Other Topics
    Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

    Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

    Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

    Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

    Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

    Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

    Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

    Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

    Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

    Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Trending Tags

      • I. Goal Based Investing
      • II. Compounding & Inflation
      • III. Assets Risks & Returns
      • IV. Efficient Diversification
      • V. The Investor
      • VI. Assets and Investments
      • VIII. Successful Investing
      • IX. Sustainable Investing and ESG
      • X. Kits and Tips
      • XI. Other Topics
    • Wealth and Investing
      • All
      • Investing
      • Wealth
      Insurance Series: Part 2.1 – Life insurance: Description and characteristics

      Insurance Series: Part 2.1 – Life insurance: Description and characteristics

      Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

      Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

      Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

      Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

      2Q23 Financial Markets Outlook: Markets and the economy are at a crossroads, after some recovery, and risks from past excesses continue to emerge

      2Q23 Financial Markets Outlook: Markets and the economy are at a crossroads, after some recovery, and risks from past excesses continue to emerge

      The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

      The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

      The assets allocation in the world reflects the countries economic development and their financial system

      The assets allocation in the world reflects the countries economic development and their financial system

      Trending Tags

        • Investing
        • Wealth
      • Retirement & Savings
        • All
        • Retirement
        • Savings
        Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

        Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

        Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

        Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: Part 1 – Overview – A backwards view

        Retirement Series: Part 1 – Overview – A backwards view

        How many years do our public or social pensions last?

        What is the replacement rate of retirement pensions?

        Trending Tags

          • Retirement
          • Savings
        • Tools
          • All
          • Calculators
          • Publications
          • Sites and apps
          Morningstar Rating for Funds

          Morningstar Rating for Funds

          Morningstar’s European Active/Passive Barometer

          Morningstar’s European Active/Passive Barometer

          Morningstar’s U.S. Active vs. Passive Barometer

          Morningstar’s U.S. Active vs. Passive Barometer

          The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

          The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

          OECD Corporate Governance Factbook 2021

          OECD Corporate Governance Factbook 2021

          G20/OECD Principles of Corporate Governance, 2015

          G20/OECD Principles of Corporate Governance, 2015

          Trending Tags

          • calculators
          • Calculators
          • Publications
          • Sites and apps
        • More
          • All
          • Best of
          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Trending Tags

            • Best of
            • Reviews
            • Snapshots
            • Others
          No Result
          View All Result
          • Home
          • Investing Series Guide
            • All
            • I. Goal Based Investing
            • II. Compounding & Inflation
            • III. Assets Risks & Returns
            • IV. Efficient Diversification
            • IX. Sustainable Investing and ESG
            • V. The Investor
            • VI. Assets and Investments
            • VII. Index Funds
            • VIII. Successful Investing
            • XI. Other Topics
            Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

            Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

            Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

            Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

            Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

            Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

            Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

            Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

            Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

            Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Trending Tags

              • I. Goal Based Investing
              • II. Compounding & Inflation
              • III. Assets Risks & Returns
              • IV. Efficient Diversification
              • V. The Investor
              • VI. Assets and Investments
              • VIII. Successful Investing
              • IX. Sustainable Investing and ESG
              • X. Kits and Tips
              • XI. Other Topics
            • Wealth and Investing
              • All
              • Investing
              • Wealth
              Insurance Series: Part 2.1 – Life insurance: Description and characteristics

              Insurance Series: Part 2.1 – Life insurance: Description and characteristics

              Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

              Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

              Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

              Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

              2Q23 Financial Markets Outlook: Markets and the economy are at a crossroads, after some recovery, and risks from past excesses continue to emerge

              2Q23 Financial Markets Outlook: Markets and the economy are at a crossroads, after some recovery, and risks from past excesses continue to emerge

              The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

              The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

              The assets allocation in the world reflects the countries economic development and their financial system

              The assets allocation in the world reflects the countries economic development and their financial system

              Trending Tags

                • Investing
                • Wealth
              • Retirement & Savings
                • All
                • Retirement
                • Savings
                Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

                Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

                Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

                Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: Part 1 – Overview – A backwards view

                Retirement Series: Part 1 – Overview – A backwards view

                How many years do our public or social pensions last?

                What is the replacement rate of retirement pensions?

                Trending Tags

                  • Retirement
                  • Savings
                • Tools
                  • All
                  • Calculators
                  • Publications
                  • Sites and apps
                  Morningstar Rating for Funds

                  Morningstar Rating for Funds

                  Morningstar’s European Active/Passive Barometer

                  Morningstar’s European Active/Passive Barometer

                  Morningstar’s U.S. Active vs. Passive Barometer

                  Morningstar’s U.S. Active vs. Passive Barometer

                  The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

                  The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

                  OECD Corporate Governance Factbook 2021

                  OECD Corporate Governance Factbook 2021

                  G20/OECD Principles of Corporate Governance, 2015

                  G20/OECD Principles of Corporate Governance, 2015

                  Trending Tags

                  • calculators
                  • Calculators
                  • Publications
                  • Sites and apps
                • More
                  • All
                  • Best of
                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Trending Tags

                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  No Result
                  View All Result
                  Investorpolis
                  No Result
                  View All Result
                  Home Wealth and Investing Wealth

                  Insurance Series: Part 2.1 – Life insurance: Description and characteristics

                  25 de May, 2023
                  in Wealth, Wealth and Investing
                  Reading Time: 4 mins read
                  0 0
                  0
                  Insurance Series: Part 2.1 – Life insurance: Description and characteristics
                  Share on FacebookShare on Twitter

                  Owning life insurance is critical to a good personal finance plan

                  What is life insurance?

                  The various types of life insurance

                  This article is part of a series on personal insurance.

                  Insurance is a basic and priority element of our personal finance plan that defines our needs and financial goals, as it gives us a protection from risk and guarantees us a safety net in the face of unforeseen adversities.

                  In the initial article of this series we looked at the penetration, densities and expenses of insurance in the world and presented the general program of this series.

                  We have also seen that we must buy protection insurance against financial shocks of low probability and high amount of cost or loss.

                  In this article we will cover life insurance, one of the most important risk insurances of a good personal financial plan.

                  This will be done in three parts, starting with the description and types of existing life insurance.

                  We will only address life risk insurance, that is, those that have only one risk component, without any financial component.

                  In another article we will present financial life insurance.

                  Owning life insurance is critical to a good personal finance plan

                  Insurance is a key component of a good personal finance plan.

                  Life insurance is perhaps the insurance coverage that best fulfills the critical protection motivations to integrate this plan for two reasons.

                  It is the insurance that responds to the second level of human needs referred to by Maslov’s pyramid, that of safety and security, or safeguarding.

                  It is also a low-probability, high-impact risk insurance.

                  The cost of the premium is considered moderate to cover a reasonably large amount of the insured capital in relatio to household savings, and is intended to protect lost income in the event of a claim.

                  This cost-benefit reasonableness of life insurance stems from the fact that the individual policyholder has to plan for the worst-case scenario while the insurer only has to do so for the average of all policyholders.

                  What is life insurance?

                  Life insurance is a contract between an insurer and a policyholder.

                  A life insurance policy ensures that the insurer pays a sum of money to the designated beneficiaries when the policyholder dies, in exchange for the premiums paid by the policyholder during his or her lifetime.

                  When the insured dies, the beneficiaries named in the policy will receive the face value of the policy, or death pension.

                  Life insurance policies may also have associated with the policyholder’s total or permanent disability coverage.

                  Life insurance is taken as a small price to pay to ensure peace of mind that the household will be financially stable in the event of premature death, or total or permanent disability of the insured.

                  Term life insurance policies expire after a certain number of years.

                  Permanent life insurance policies remain active until the insured dies, stops paying premiums, or redeems the policy.

                  The value of a life insurance policy is directly linked to the financial strength of the company issuing it.

                  The various types of life insurance

                  There are two major families of life insurance, life risk insurance and financial life insurance.

                  In the former, life insurance only has one risk component, while the latter also has a financial component.

                  As we said earlier, in this article we only cover life risk insurance, delving into financial life insurance in an upcoming article.

                  There are two broad categories of life risk insurance, temporary (or fixed-term) life insurance and permanent or lifetime life insurance (including full and universal life insurance).

                  As the names themselves indicate, the former have a definite and pre-defined term or term, while the latter have a permanent term, that is, until the death of the insured.

                  Previous Post

                  Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

                  Feria

                  Feria

                  Related Posts

                  Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean
                  Investing

                  Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

                  15 de May, 2023
                  Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem
                  Investing

                  Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

                  8 de May, 2023
                  2Q23 Financial Markets Outlook: Markets and the economy are at a crossroads, after some recovery, and risks from past excesses continue to emerge
                  Investing

                  2Q23 Financial Markets Outlook: Markets and the economy are at a crossroads, after some recovery, and risks from past excesses continue to emerge

                  9 de April, 2023
                  The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.
                  Investing

                  The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

                  23 de March, 2023
                  The assets allocation in the world reflects the countries economic development and their financial system
                  Investing

                  The assets allocation in the world reflects the countries economic development and their financial system

                  23 de March, 2023
                  How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management
                  Investing

                  How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

                  2 de March, 2023

                  Leave a Reply

                  Your email address will not be published. Required fields are marked *

                  Trending

                  Insurance Series: Part 2.1 – Life insurance: Description and characteristics

                  Insurance Series: Part 2.1 – Life insurance: Description and characteristics

                  25 de May, 2023
                  Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

                  Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

                  22 de May, 2023
                  Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

                  Maximizing the time invested in the stock market instead of choosing the time to invest: Part 2.2 – Stock cycles and reversion to the mean

                  15 de May, 2023
                  Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

                  Series How Women Invest: Part 3 – The 5 investment gaps and the retirement problem

                  8 de May, 2023
                  Investorpolis

                  We developed this blog because we believe that only a small learning effort is needed to make a big change in the decisions and results of our investments and financial assets.

                  Main categories

                  • Investing Series Guide
                  • Wealth and Investing
                  • Retirement & Savings
                  • Tools
                  • More

                  Newsletter

                  Sign to our mailing list to receive updates direct to your inbox!

                  *We don’t spam

                  • Privacy Policy
                  • Cookie Policy
                  • Contacts

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  • pt-pt Português
                  • fr Français
                  • es Español
                  • en English
                  • Home
                  • Investing Series Guide
                    • I. Goal Based Investing
                    • II. Compounding & Inflation
                    • III. Assets Risks & Returns
                    • IV. Efficient Diversification
                    • IX. Sustainable Investing and ESG
                    • V. The Investor
                    • VI. Assets and Investments
                    • VII. Index Funds
                    • VIII. Successful Investing
                    • X. Kits and Tips
                    • XI. Other Topics
                  • Retirement & Savings
                    • Retirement
                    • Savings
                  • Wealth and Investing
                    • Investing
                    • Wealth
                  • Tools
                    • Calculators
                    • Publications
                    • Sites and apps
                  • More
                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  • About us
                    • Who we are
                    • Mission
                  • Login
                  • Sign Up
                  • Cart

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  Welcome Back!

                  Login to your account below

                  Forgotten Password? Sign Up

                  Create New Account!

                  Fill the forms bellow to register

                  All fields are required. Log In

                  Retrieve your password

                  Please enter your username or email address to reset your password.

                  Log In
                  We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
                  Cookie configurationCookie PolicyAcceptReject
                  Manage consent

                  Privacy Overview

                  This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
                  Advertisement
                  Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
                  Analytics
                  Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
                  Functional
                  Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
                  Necessary
                  Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
                  Others
                  Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
                  Performance
                  Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
                  SAVE & ACCEPT

                  Add New Playlist

                  Are you sure want to unlock this post?
                  Unlock left : 0
                  Are you sure want to cancel subscription?