Anyone who enters the public service and becomes a career server after going through contests – which are usually very competitive – also needs to take steps to plan their financial life for the future. At these times, insurance for public servants or a private pension plan is usually among the main options for implementing this plan.
However, the question always arises whether there are private pension plans or social security insurance for public servants that specifically serve this professional segment. To find out the answer, keep reading!
What are the insurance categories for civil servants?
Although public servants who pass a public contest and who meet a series of requirements have some advantages, it is important that they reinforce financial planning. After all, no one is immune to a series of unforeseen events that can compromise the whole family.
In this sense, public service employees can also count on the protection of life insurance under the conditions offered by insurance companies operating in the market.
How are the conditions?
Life insurance for civil servants is contracted similarly to insurance for any other professional category since, with rare exceptions, there are no specific products for this segment of activity.
Life insurance establishes a contract (called a policy) between the insured and the insurance company. From there, it assumes a series of risks and guarantees the payment of indemnities in case any unforeseen event affects the insured or their dependents, as indicated in the contractual clauses.
What are the coverages?
The protection offered by life insurance varies according to the coverage contract. The most basic usually comprise the death of the insured person or disability caused by accidents and serious illness.
In addition, it is possible to increase coverage with a series of additional coverages and services, including hospital fees and funeral assistance. Alternatives allow the insurance to be redeemed during life, making its use more flexible.
And what are the benefits?
The benefits of having life insurance protection are numerous, even if you are a civil servant, an occupation in which most careers have a higher level of stability. Thus, among the benefits are:
• great value for money;
• ease of succession planning;
• lifetime use;
• possibility of including different dependents and beneficiaries;
• agile and uncomplicated indemnity payment process.
Can a public employee hire a private pension plan?
Finally, in addition to life insurance, it is common to adopt a private pension plan as part of efficient financial planning. However, many public servants are unsure whether they can count on this tool and all the benefits it offers, such as some tax exemptions.
In general, there is no impediment for a public servant to join a private pension plan in preparation for retirement. With this, it is possible to plan for when it is time to stop working without relying exclusively on Social Security or the own funds of this professional category.
Taking all this into account, the professional who works in the public service must understand the particularities of his career, as well as know the possibilities of insurance for public servants. In this way, it is possible to achieve long-awaited financial stability, which allows you to better enjoy all that life has to offer.
Want to know more?