What are the advantages of Life Insurance?

What is a insurance of life?

Life policies are part of the insurances called for people and consist of the payment of a previously stipulated premium to be able to receive in case of death or disability an amount that covers the lack of income of the insured . The amount of the premium that the insured faces depends on the risk and the monetary amount that he wants to receive in case of disability or that his beneficiaries receive in the case of his death. In addition, that final indemnification of the policy can be received in a single payment or as an income, as the insured or his beneficiaries wish.

What is life insurance for?

Hiring a health insurance policy with broad coverage when we have a family to take care of and protect is very common, but we can still go a little further. Hiring life insurance is a guarantee so that we can face some complicated circumstances with the greatest possible peace of mind and support. However, we are not all aware of what life insurance is worth. Although they can be hired at any age, the truth is that adults around 40 and with family responsibilities are the target audience for life insurance. If we fit into this profile, we must bear in mind that not only are they designed to provide financial resources to family members in case of death. They will also give us the economic income that we may need in our home in case of total and permanent disability. Many people doubt the effectiveness of these insurances, thinking that they are an investment of unnecessary money, which, in many cases, will never be profitable; not knowing what life insurance is for is an error since they have many uses, depending on the type of policy chosen. In fact, there are three major types of life insurance, designed to cover the needs of different types of users and beneficiary families. Ordinary life insurance involves the payment of premiums until the death of the user. This amount of money is dedicated to two aspects: the sum that will have to be paid at death and the amount that is dedicated to cover the risk of premature death. Temporary life insurance is the one that is contracted for a specific period of time. Its price is calculated based on the age and possibilities of death of the insured. The advantage of this insurance is that it is cheaper than the previous one and gives you the protection you need when you really need it. In addition, it is often renewable automatically. Dotal life insurance also has its own characteristics. In some cases they involve the delivery of money, if the insured survives at the end of the contracted term. Likewise, there is mixed dotal life insurance, which has certain characteristics, since it combines the pure dotal with the temporary life insurance. Thus, we can receive the money in case of death or survival. Each of these life insurances, with their own defined characteristics, is suitable for a specific type of public. Especially important is to take into account the age of the insured and the risks that can be assumed in a given period of time. Therefore, it is important that we know what life insurance is for and choose the policy that best fits our personal and family situation, always bearing in mind that guaranteeing the stability of our people in difficult circumstances should be one of the main objectives of our life.

Features

• It can be hired individually or collectively.
• Your hiring is voluntary.
• It has a definite validity, the temporary contracts are for a defined period and the whole life is until the death of the insured.
• It establishes a maximum age of the insured to be incorporated in the policy.
• It establishes a maximum age of the insured in which coverage will be given.
• A health statement is usually required before joining the policy.
• The insured must take into account if there are gaps stipulated in the policy, the characteristics of these and, if so, if they meet their needs.
• There are different types of life insurance: temporary, whole life, flexible life, with savings, deductions, etc.

They usually exclude:

• Activities or risky sports, such as extreme sports, handling explosives, work at height, etc .; or they could be accepted by the insurance company with an increase in the premium.
• Pre-existing diseases and health conditions, which could be accepted with an increase in the premium.
• Suicide before a certain period, the death penalty or participation of the insured in a crime, participation in war or terrorist acts, etc.

Exclusion of coverage for pre-existing diseases or health conditions:

The inclusion in the general conditions of the coverage exclusions policy for pre-existing illnesses or ailments, must expressly indicate that these correspond to illnesses, illnesses or health situations diagnosed or known by the insured or by whom he contracts in his favor, before the insurance contracting. The insured will be obliged to declare sincerely all the circumstances that the insurer requests to identify the risk and appreciate the extent of it. In order to provide the statement referred to in the preceding paragraph, it will be sufficient for the contracting party to inform the tenor of what the insurer requests, on the facts or circumstances that he or she knows and to identify the risk and assess its extent.

Precautions and warnings

When contracting a life insurance policy, prior to agreeing to the conditions offered by the Insurance Company, it is important to take into account the following recommendations:

• Read carefully and make sure you understand the insurance proposal before signing the contract, as well as the general conditions of the policy, which can be consulted in the policy deposit of the CMF with the respective code (Code POLXXXXXX).
• Before signing the insurance proposal, be clear: 1. How and under what conditions the insurance is renewed. 2. How will the cost of insurance be readjusted in case of renewal? 3. In which cases the insurance will not pay. 4. The requirements to collect the insurance. 5. The period of coverage and validity of the insurance.
• Ask the insurer or insurance broker for your contract and verify that the particular conditions correspond to the agreement. In case of collective insurance, through the policyholder, the insurance company must deliver to each one of the insured persons a copy of the policy or, at least, a certificate certifying the coverage. In this last case, both the insurer and the policyholder and the broker must keep a copy of the policy available to the interested parties.
• Be sure to incorporate information from at least one insurance beneficiary into the contract.
• Consider the risk rating of the company that offers life insurance.
• Check that the insurance brokers ? they are registered in the CMF Registries.
• Do not deal with unauthorized persons and denounce in case of detecting any irregularity.
• Keep in mind that insurance companies pay a commission to insurance brokers for their advisory work, who must act independently with different companies, and in some cases their sales agents, who can only act for an insurance company. for which they work.