Having insurance has always been something complicated, especially if we rely on all the evaluation that insurers make us, the amount of requirements and papers, in addition to the money that must be disbursed from time to time without neglecting other expenses.
However, thanks to the pandemic and the insurtech with the technology that it offers us, insurers have been able to be more aware and support the insured in their hiring process, offering them a number of new products that are better adapted to them and without pay really exorbitant amounts.
What is financial wellness?
It is about feeling security in regards to the sufficiency of money to be able to satisfy personal needs, as well as those of our loved ones. In the same sense, we can understand it as the control of said finances to make decisions of that nature without problems.
There is an important and essential point within financial well-being to which we must pay all our attention and it is about financial protection and against any unwanted event, it could economically save our family.
Financial freedom depends on the reality of each person, what if it becomes common among all, is that in the absence of income from the family provider, well-being is fractured due to:
- Death.
- Disability.
- Terminal Deceases.
How can we feel protected?
Although there is no single formula to define the amount I need, as an approximation, each person should be covered between 7 and 10 times their annual salary, adding around USD $ 58,000 for each school-age child.
In the case of Chile, about 20% of formal workers are covered (down 18% also considering informal workers). In terms of the number of companies, this is equivalent to the fact that only 2% of companies with more than 10 employees have taken out some type of life insurance, with a concentration in large and medium-sized companies.
It is known that the average coverage amounts of a large company, for a manager can go around $ 146,600,000, that of an executive close to $ 87,960,000 and for employees of medium-sized companies it does not even reach $ 21,990,000.
Obviously these figures leave a clear conclusion, the need for better protection. It is known that 70% of the formal working population does not have coverage, while the remaining percentage has a material shortage and declares to decrease their protection gap.