Some people may be confused when choosing between life insurance or a private pension plan.
The pension plan aims to be long-term savings, that is, it is part of your retirement planning. Social security is a way for you to save today to have a reserve when you stop working.
Life insurance is an immediate protection. With the policy in hand, whenever an event is covered by the policy occurs, the insured or the beneficiary receives what was agreed upon when contracting the insurance.
Both protections are important for a successful financial strategy.
Private Pension was born to complement Social Security and compose the retirement planning of clients.
Usually, banks and independent insurers offer this type of product. In private pension plans, the customer chooses the amount of the contribution and the frequency with which it will be made. The amount to be received will be based on the contribution that was made and the results of the financial investments linked to the plan.
Life insurance is considered a protection against unforeseen circumstances. So, contrary to what many people imagine, it is a product suitable for people of all ages. If you have someone you would like to support in your absence, then you should hire this service.
After all, this is the goal of life insurance: to guarantee the financial security of your dependents for a certain period of time if you are unable to do so and cannot be confused with a private pension plan.