Most people who come to us to do life insurance are going through that moment. The first question is does life insurance fit for you? Mirna already answered. If you have an interest in benefiting someone with this insurance, it’s up to you. If you think it’s not the right time and you’re still building equity and building your family, you must evaluate the ideal time to hire. If you are thinking of leaving it to the family, but already have a great heritage life insurance may not make sense. – It may end up not making sense. If you have a small wealth and you cannot secure your children by studying and there’s no way they can live without you there makes more sense. Exactly. The nature of life insurance is we pay a premium, monthly contributions we make to the insurer that accepts our risk.
The risk is death. This is what we call basic life insurance coverage. But it is not the only coverage you can hire. Today there are some types of life insurance in Brazil. But let’s simplify the conversation and talk about the life insurance you would hire anywhere and we call them annuals. Every year they are renewable and increase the value as you get older. The value increases because we get closer to old age and death. Life insurance is concerned with maintaining quality of life and leave resources to its beneficiaries and we draw a profile of their use. You commented on a relevant point that is not all life insurance coverage they are usable only in their absence. -In death. Exactly. In the case of disability, which is common life insurance coverage, you can use for permanent, partial disability.The insurance for serious illnesses is very common in Brazil. The Brazilian is more convinced that he will have a serious illness than he will die. The level of demand for serious illness insurance is higher than life insurance.
But serious illnesses or disability are coverages within life insurance. So in conventional insurance in Brazil you have to hire life insurance to be able to choose other insurance. I did not focus my life insurance on the amount that the beneficiary would receive with death. My goal for life insurance today is serious illness because it covers cancer, disability and hospitalization because I depend on myself to earn money. If I stay in the hospital for a long time, where do I get income from? It was one of the points that caught my attention the most when I took out life insurance. Remembering that life insurance does not go through inventory either. Many families are desperate when their father dies.
This money does not go through inventory and does not get stuck in bureaucracy. There is no charge for ITCMD, which is Transition Tax Cause of Death or Donation. Everyone is required to pay at the time of a death. The rates of this tax are low in Brazil compared to the world. And life insurance is ideal for those who have no assets, but have people that depends economically on you. If something happens to you as incapacity for work or death these people would have quality of life and would continue to maintain the routine of life without being shaken by his death.
Life insurance serves as an asset leverage. You use life insurance on D + 0 to get the amount to insure the family. An example, I am a 30 year old man, I have a good health. I will pay 250 reais per month for a life insurance that covers death and total disability and permanent. In this case, it is 1 million insurance for beneficiaries or to myself in case of disability. So through 250 reais a month you get 1 million reais in the event of a situation we call an accident.
When I took out my insurance I didn’t think about how much the beneficiary was going to receive because nobody depends on my income. I worried about what would happen with my income in case I had a problem. If I couldn’t work anymore and had to use the money I have today would i be able to live off my income well or would i have to use my assets every month? I thought the way I am today would not live the same pattern that I have without taking a part of the equity that would impact future income. So I preferred to take out life insurance until I had money to live on an income and maintain my quality of life if something happens to me and I have no income and maybe in the future I’ll come back to other options for equity succession.
Because I also already have a private pension plan thinking about heritage succession. And we can use social security and life insurance to accumulate in the long run and have investment security until you reach that goal. Let’s suppose that I want to add 1 million and I will start with 300 reais per month. It will take a while to get there, but I already have people who depend on me.
And if I lose my income, the 300 reais I kept for 2 years will not hold me back. So life insurance is a protection for scenarios like this. Using pension plus life insurance would be the best way to save money and protect your assets at the same time. For those who have a BTG account, it is possible to take out life insurance. BTG has life insurance and private pension, but you have to open an account. I’ll leave the link in the description to open your free BTG account. To close Gabriel will talk about other types of insurance.
We are talking about the annual renewable insurance that increases the payment amount as we get older. And there is temporary insurance who hire until a certain age. For example, I am having financial education and preparing to maintain the quality of my investments by saving money every month and I hope that when I’m 60 I don’t have to work anymore and life insurance because I already collected my money. 60-year temporary insurance will keep me at the level of protection for up to 60 years. It is a product for those who organize their finances and their life goals well. There is another whole life insurance that has a portion dedicated to accumulation. You contribute over a period of 10, 15, 20 years and the amount has a redemption fee because many people question that when they stop paying they lose everything. This is exactly what I have. Many people confuse it with a private pension sold wrongly, but it is life insurance. Life insurance has one goal and private pension has another.