Loan PRS

Single and unencumbered. Life insurance is also for you. Find out why

Single and unencumbered. Life insurance is also for you. Find out why

You are at your best. You’re single and unencumbered. Why is life insurance for you too? Find out why below. You are between 25 and 45 years old and you are single and unencumbered; you have achieved what you were looking for in life: to have few obligations, no children to take care of and reasonable financial peace of mind. You have your own time and enjoy the lifestyle you have always dreamed of.
Single and unencumbered, a growing trend in Spain
Single is an English word that means “unmarried”. Some time ago, being single had certain negative connotations, but society has evolved and, today, singles of both sexes are increasingly numerous and proud of their status.
According to the INE, 25% of Spanish households have only one person living in them. In 2020, there were 2,785,000 people under the age of 65 living alone. A large percentage of them are what are known as singles. This trend is increasing exponentially and, by 2033, there are expected to be 5.8 million single-person households; almost 30 % of all households in Spain. Source: INE.
That is to say, more and more singles, more and more single-person households and, therefore, more and more “alone”, if anything happens to us. Because, although taking care of yourself and what makes you happy is something you know how to do very well, have you thought about how to proceed if you suddenly suffer an incapacitating illness?
The solution: a life insurance policy that impacts your own wellbeing
Until now, you may have thought that life insurance, not having a partner or family, made no sense to you. Nothing could be further from the truth, because you can be the beneficiary of your own life insurance.
You should know that if your insurance policy does not specify the beneficiaries, they will be, by default, your legal heirs. But in the event that one of the following guarantees is activated: serious illness, professional disability or absolute and permanent disability, the beneficiary will become the insured, i.e. yourself.
What is life and health insurance?
In this type of insurance, it is the insured himself who pays the policy in the event of a serious illness. The life and critical illness insurance will pay a capital sum to the insured in the event that he/she is diagnosed with a serious health problem caused by an illness.
There are different types of insurance and you should find out which one you choose in order to know which illnesses are covered. The most common illnesses covered by insurance are: cancer, stroke, kidney failure, transplantation of a vital organ, paralysis, Alzheimer’s disease or Parkinson’s disease. In the case of women, some specific diseases such as breast or uterine cancer can be included. A 34-year-old woman, paying €140 per month, will receive €10,000 if she suffers from a cancer specific to women, and €179,000 in case of disability. If you want to make your own calculation of how much you would receive, you can do so on the vidaymujer.es comparator.
There are different types of policies and coverages, ranging from transitory to permanent disability, including professional disability. On the other hand, if the insured dies, the capital of the policy will be collected by the person or persons designated by the insured, or, if not specified, by his or her legal heirs.
This point will be very useful if you have a mortgage or, for example, a car loan, since the life insurance will provide the beneficiaries with the money to pay off these debts. Otherwise, if the heirs do not have the money to take care of these debts, they may be forced to renounce the inheritance.
You can take out life and disability insurance from €109 per year. It is a small amount, much less than, for example, an annual subscription to the gym. Check all the options and prices of the different insurance companies in our comparator.
What is disability coverage and why should you take it out?
Disability coverage is an add-on that is taken out together with life insurance. It is essential for singles as it covers the insured’s disability or inability to work. There are different degrees of disability, as well as policy models. It is important that you know them in order to contract the life and disability insurance that best suits your situation.
Absolute and permanent disability for any type of work.
It is an irreversible physical situation that makes it impossible for the insured to perform and maintain any type of work relationship or professional activity.
Absolute and permanent disability for one’s own profession.
It is an irreversible physical situation that makes it impossible for the insured to perform and maintain any type of work relationship or professional activity.
Absolute and permanent disability for one’s own profession.
This is an irreversible physical situation that makes it impossible for the insured person to carry out his/her usual profession or any other similar activity that is typical of his/her professional training and knowledge. An example could be that of a surgeon who has suffered damage to the hand with which he operates and, therefore, cannot perform that profession, but can perform other professions.
Major disability
This occurs when the insured needs a third party to be able to perform basic functions (eating, dressing, toileting, etc.).
In order to be able to collect the insurance in case of disability, this must be absolute and permanent, and in case of professional disability, it must be qualified by the Social Security as professional disability of 100%.

Remember that, if you are a woman, you can take out a specific life insurance policy, which will pay you a significant amount of money if you suffer a so-called “female” cancer, and which will provide you with financial security while you recover and can return to your previous life.

 

Why you should take out life insurance with disability coverage
If you are still in doubt as to why you should take out life and health insurance, and the peace of mind it will give you, here is a list of reasons:

If you are single and self-employed, what money are you going to live on, taking into account the lack of labor protection for this group of workers.
If you are a woman suffering from cancer, how can you find someone to take care of you and help you during chemotherapy and radiotherapy treatments?
In case of professional disability, how will you be able to maintain a standard of living similar to the one you have now if sick leave does not cover 100% of your previous salary?
If you suffer a total disability, how will you face the costs of modifying your home to adapt it to your condition?
These are just a few examples of situations in which you would need a life insurance policy of these characteristics. Can you think of any others? You can write them in the comments of this publication.

If you need specific information on the amount and particularities of the Social Security retirement or pensions for temporary or permanent disabilities, you can consult this official page.

Remain independent, maintain your lifestyle
Life insurance is an investment in yourself, much more valuable than travel, designer clothes or spa visits. It is an investment for the future that makes you enjoy the present knowing that, if you have serious health problems and can’t work, you won’t have money problems.

Exit mobile version