Tempo de leitura: 5 minutos
Life Insurance – What is Life Insurance, How to Get Life Insurance?
Answer me honestly: what is the sense in sacrificing yourself every year to take out auto insurance, paying more than $1,500/year to defend the vanity of your automobile assets, but, on the other hand, leaving your loved ones helpless in case a fatality happens to you? Isn’t it time to understand how to take out life insurance?
It is based on this awareness that many families have reorganized their personal finances, adding a life insurance policy as an elementary item of family protection. This is proof that people have matured in the management of their budgets.
Life insurance on your back
Evidence of this evolutionary movement can be seen in the exponential growth in demand for this insurance in recent years. Ignoring the crisis, just between January and November 2016, the life insurance segment expanded by an impressive 28.4%. And I love that this “awakening” was overdue, considering that in the USA, for example, 3 out of 5 citizens have a policy of this nature.
If you have children, are an important part in maintaining your family’s standard of living, and want to protect your family even if fate does not allow you to be by their side in the future, follow this step by step guide on how to get wonderful cost-effective life insurance.
What is the difference between life and personal accident insurance?
Personal accident insurance is more economical, but make no mistake, the differences between it and life insurance are quite important. Let’s describe them.
The elementary and mandatory coverage of a life insurance policy refers to the risk of death, whose occurrence was due to natural or accidental reasons (excluding only suicides and, in some contracts, more atypical facts, such as radioactive contamination, practice of intentional illegal acts, among others).
On the other hand, the personal accident insurance is only valid for cases of deaths resulting from accidents covered by the plan (this restriction explains the lower premiums).
Choose the best life insurance coverage for you and your family!
Learning how to take out life insurance that is aligned with your needs involves understanding what multiple coverages are offered and rationally dictating which ones you and your family need most.
Want an example? If you are self-employed, you may want to take out a coverage called Temporary Disability Insurance (DIT), which guarantees compensation to the insured during periods in which he/she cannot work due to illnesses covered by this insurance.
In other words: the insurance element is death coverage (to financially protect your family members). However, there are insurances with different combinations of coverage, which can include
Compensation to the insured in case of disability (which can be paid as a lump sum or as an ongoing benefit);
Medical, hospital and dental expenses;
Daily Allowances for Temporary Disability (DIT);
Daily Allowances for Hospitalization (DIH);
Reimbursement with costs together with medication, under certain conditions;
Among other benefits.
Search for Insurance Companies that offer the Perfect Combination for you and your Family
Once you know what life insurance is and what covers are relevant to defend your family, it is time to go to the market, looking for the best insurance company. Unlike auto insurance, where the buyer usually has difficulty reaching the insurer without the intermediary of a broker, life insurance can be taken out through the insurance company’s sales team or online.
So, make a price quotation between the different organizations in the market, but remember to always compare using the same coverage, the same cost of capital insured and the same waiting period.
Always check the reputation of each company ”organizaciones” on consumer protection sites!
Read carefully the contract and ask all your questions before anything else
How to make a life insurance policy without making mistakes? Start by not overlooking any letter of the proposal and general conditions of insurance, which will be sent to you after the first contact with the insurance broker.
Questions that this strict file will answer:
What is the grace period of my policy?
What is the geographic scope of coverage?
What risks are excluded?
Does the insurer have products specific to my needs?
* Insurance companies usually offer many “products” within life insurance, such as credit life insurance (which guarantees the settlement of the property financing in case of death of the insured) and educational coverage (to cover education expenses for 2 children).
For women, a lot of attention, the market enables products made exclusively for them, such as indemnity in cases of diagnosis of cervical cancer or breast cancer.
All these details must be sought in the general conditions of the insurance.
After signing the contract always leave all the documents with easy access to the family members
All policy documents should be kept in a place where the whole family knows about them. In the event of a claim, the triggering of the policy is very important. Simply contact the insurance company (through one of the many channels that will be made available) and report the claim.
The organization will send a list of documents to be submitted and, after delivery, in no more than 30 days the resources are released to the insured/beneficiaries. It is worth remembering that this indemnity is not included in the inventory, nor is subject to income tax.
Now that you understand how to make a cost-effective life insurance policy, I hope this short article can help you in some way.