Life Insurance in Israel

Life Insurance in Israel

The most comprehensive Life Insurance

Life Insurance: Protecting Your Loved Ones’ Future

One of the most important things to do to ensure the financial well-being of your loved ones is to consider the uncertainties of life and prepare for the tragic event of being unable to provide for them with dignity due to loss of income, disability, or, God forbid, death. This is where one of the crucial and common insurances in our country comes into play: “Life Insurance.” Life insurance provides a safety net and financial protection for those dependent on you for their livelihood, ensuring that they can continue to live with dignity in the event of unforeseen circumstances.

What is Life Insurance?

Life insurance is a contract between an individual and an insurance company, in which the insurer agrees to pay a designated sum of money to the beneficiaries specified by the insured in the event of their death. This financial protection aims to provide a source of income, replace lost earnings, or cover outstanding debts and remaining expenses, thereby securing the dependents’ stability.

Types of insurance

Life insurance typically refers to coverage in the case of death. There are two main types of insurance- 

  1. Term Life Insurance:

Term insurance is a life insurance that provides a financial safety net for your loved ones in the event of your premature death. It is designed to ease the financial burden that may arise from the loss of your income and ensures the well-being and stability of your dependents. 

  1. Mortgage Life Insurance:

Another important type of insurance that many of us are familiar with is mortgage life insurance. When purchasing a mortgage, this insurance is often required. Its purpose is to protect the lender, usually a bank, in the event of the death of the mortgage holder. The bank becomes the beneficiary, and the insurance pays off the remaining mortgage, ensuring that the property remains with the family without the burden of debt.

Why is Life Insurance Needed?

Financial Protection for Your Family: If you are the primary breadwinner in your family, your sudden demise could leave your dependents struggling to cover daily expenses, pay debts, or even maintain their quality of life. Life insurance provides a one-time payment to your designated beneficiaries upon your death, allowing them to maintain their quality of life.

Who Actually Needs Life Insurance?

Life insurance is essential for individuals with dependents who rely on them financially. If you have children, a spouse, elderly parents, or other family members dependent on your income, it’s crucial to consider their financial well-being in the event of your premature death or the inability to provide a proper income.

How Much Money to Allocate for Life Insurance?

The amount of money to set aside for life insurance varies based on several factors. One decisive factor is the standard of living you want to ensure for your beneficiaries in your absence. It’s essential to assess their financial needs, including daily expenses, housing costs, education expenses, and any outstanding debts.

Another crucial factor is the amount you can afford to allocate from your monthly income for life insurance premiums. Finding a balance between providing adequate coverage for your loved ones and ensuring that the premiums fit within your budget is vital.

Life Insurance for Disability and Incapacity:

Life insurance can also provide coverage in the case of disability or incapacity. These policies come into effect when the insured is unable to work due to injury, illness, or disability. They ensure a continued income during challenging times. Typically, these coverages are part of a pension plan, but they can also be purchased as stand alone policies. In contrast to life insurance, where a lump sum is received, disability insurance provides a monthly fixed amount, usually up to 75% of the salary (subject to the terms of the pension fund or policy).

In Simple Terms – How Much Does Insurance Cost?

Regarding the monthly payment of insurance, several factors can influence the premium amount. These factors generally include:

  1. Age: Generally, the younger you are when purchasing life insurance, the lower the premium will be. Age is a decisive factor because it affects the risks related to potential health issues or mortality.
  2. Gender: Due to the fact that women have a longer life expectancy, their risk is slightly lower, resulting in lower insurance premiums.
  3. Smoking: Smoking is a known health risk, and therefore, the cost for smokers is higher compared to non-smokers. This is due to the increased health risks associated with smoking.

In the last three cases, there is a tariff – which depends on age, gender, and smoking. In specific cases, your personal situation may be examined – both health-wise and in terms of risk-related hobbies – and then additional costs may be added to the premium.

Health Condition: Your health condition plays a significant role in determining your life insurance premium. Insurance companies assess your health through a medical examination, considering factors such as existing conditions, lifestyle habits, and family medical history. In general, there is a fixed price for everyone. In certain cases, they may also request an increase in the premium due to a complex health condition.

Hobbies or Risky Occupations For example, skydiving from an airplane: If you engage in high-risk activities or have a dangerous occupation, such as skydiving, rock climbing, or working in hazardous environments, your insurance premiums may be higher. These activities increase the likelihood of accidents or injuries, leading to higher risk for the insurance agency

Ultimately, insurance is a crucial financial tool that provides peace of mind and security for your loved ones in the face of life’s uncertainties. When considering life insurance, it’s essential to weigh the coverage needs against your budget, ensuring a balance that meets the financial requirements of your dependents without straining your finances.

Client Stories
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What Our Customers Say About Us

Jackie Conway
Jackie Conway
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I have been working with Segal Insurance for a few years now and have found them to be professional and efficient. Their prices have also been very reasonable. Definitely a satisfied customer!
Linda Glazer
Linda Glazer
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I’ve been using Segal Insurance for about 17 years now and have found their service to be excellent. They’re efficient, they’re fast and one feels almost as if one’s their only client when approaching them for advice or claims …it’s almost like being among family!
Gillian Braunold
Gillian Braunold
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Never failed to be helpful on processing claims and ensuring good outcome.
Amy Margolis
Amy Margolis
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Excellent service! If there are questions, there is always a quick answer. Also they helped to insure my son’s car quickly although he is a young driver,and they got me a very good price. Very happy with the service!
Aharon Levi
Aharon Levi
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There is always someone to talk to. When I needed help with forms there was always someone to help and simplify things.
David Cohen
David Cohen
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Johnny is honest, straightforward, ethical, and a hell of a good guy. I not only get good advice, I enjoy my meetings with him. Highly recommended”