The usefulness of life insurance can be very different depending on the type of policy you take out. Therefore, at Kelisto we explain to you which are the most important differences between the types of life insurance that exist in the market: risk life insurance and savings life insurance.

  1. The  life insurance  is a good way to not only secure your future but the future of your loved ones. Contrary to what it may seem at first, these policies not only serve to cover the death of the person who hires them, but they are also a product that will allow you to take advantage of your savings. If you want to get one of these policies, but you don’t know which one is the most convenient for you, at Kelisto we explain the main differences that exist between the  types of life insurance  that you can find in the market.

Once you know which insurance is best for you, in our  life insurance comparator  you can compare the different options offered by companies, ordered by price and with the coverage that each one includes. You will also be able to know the  cheapest life insurance of  the month thanks to our ranking.

Who’s who in life insurance

Before starting to break down the  types of existing life insurance , it is necessary to be clear about who are the people who are going to be reflected in a policy of this type. These actors are four: the insurer, the policyholder, the insured and the  beneficiary of life insurance for parents .

  • Insurer

It is the entity to which the premium is paid and which is responsible for paying the compensation when the time comes. In life insurance, the  insurer would be each of the insurance companies  with which you can subscribe a policy. Although you can choose the company you want to acquire this product -as long as due to your characteristics it agrees to cover you-, if you are going to  take out life insurance with your mortgage  in order to improve its conditions, you may have to do it through your bank.

  • Taker

It refers to the  person who takes out the insurance . In most cases it coincides with the insured, since a person usually takes out life insurance for himself, but the situation may arise in which the insured is someone else. For example, if you want to take out life insurance for a third party (such as your partner or your child), you will be the policyholder, while that third party will be the insured.

  • Insured

It is the  person on whom the risk falls , in the case of life, death or disability insurance. The policyholder can take out a policy for himself (so he would also be the insured) or subscribe it to insure the life or property of a third person.

  • Beneficiary

It is the  person who will receive the compensation  in the event that the insured suffers any damage covered in the policy. In the case of death insurance, the beneficiary, logically, cannot coincide with the insured. However, in the case of disability or disability insurance, the insured and the beneficiary can be the same person. For example, if you take out life insurance for yourself to compensate you in the event of a disability due to a traffic accident.

Types of life insurance: risk life policies

Among the  different types of life insurance  that you can find in the market, the best known is  risk life insurance . In this type of policy, the death of the person is covered, although there are also other modalities in which you can take out risk life insurance with  disability or disability coverage . The latter are common among the  self-employed  and employed, since it allows them to obtain compensation in case they cannot perform their work. Risk life insurance can be:

  • Whole life insurance

With whole life insurance, the insured will be covered for life , that is, there is no deadline by which the company will stop providing the service. It works as a risk life insurance, but also as a savings life insurance, since the insured will be able to collect a guaranteed capital (plus interest) from the second year of the policy (or at the time indicated in the conditions individuals). As risk life insurance, the beneficiaries may receive the corresponding compensation at the time of the death or disability of the insured. The price of the premium in whole life insurance will always be the same, therefore, it does not take into account the increase in risk as the insured becomes older.

  • Term life insurance

With term life insurance, the policy is signed  for a specific time , which is the period for which the insured will be covered. That is, if the insured does not suffer any damage that is covered in the insurance during that time (death or disability), the insurer will not have to pay the compensation, so the money invested cannot be recovered. The premium of this type of life insurance will change over the years, so it is more advisable for young people who are thinking of getting life insurance, since being younger, their premium will be cheaper .

Therefore, this insurance can be contracted for days (such as travel life insurance), for a few years (for example, for 10 or 20 years from the time the policy is signed) or up to a certain age, such as 65 years.