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Mexico City - Life Insurance

Always buy insurance from a renowned company. Don't buy insurance from door to door sales people.

Insuring yourself is a good way to know that your family will be financially supported if something unexpected should happen to you. Life insurance plans include term life, universal life, and whole life. Term life is the most basic protection covering 10, 15, 20 or 30 year periods and can be converted into a Universal life insurance policy. The good part of term life insurance is that they pay a set amount of money.

The Universal policy is more flexible, guaranteeing the possibility of withdrawals as well as tax-free revenue generated by the policy. The Whole life plan offers permanent life insurance that has a more complete protection to policy holders. They usually promise revenues, as if it were a sort of savings or investment account. However, in the case of universal and whole life insurance, look into the kind of revenues they promise and where these revenues are coming from. The agent will show you a table of future earnings, with fabulous figures, under a set of assumptions.
These revenues may be promised to come from investments made by the insurance company, in which case they could end up not meeting such assumptions and not producing much value after a few years, specially if the revenues are promised in pesos and therefore, subject to devaluations.
Before making a decision, ask the insurance agent to run a revenue forecast based on more conservative assumptions and yields from investments, and if possible, include peso devaluation scenarios. Then compare it to the total amount of premiums you would end up paying.
It would also be a good idea to look into foreign policies, quoted in stronger currencies.

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