Life insurance policies can be very simple and straightforward, yet they are also incredibly complex. If you want to ensure that you’re covered when you need it most, it’s important that you understand the ins and outs of how life insurance works. You should also know what you need to do before you die in order to keep other people from needing to pay for your funeral or your burial expenses.
Life insurance is a critical financial tool for almost all people. While it can increase one’s net worth, it also carries with it certain risks. The most common risk that many people are familiar with is the risk of not being able to pay for their own life insurance policy, should they die unexpectedly. However, there is also the risk of being denied coverage for a claim or never receiving a payment to your policy in the event of a natural disaster.
Life insurance is one important aspect of a person’s financial life. A good life insurance policy is one that helps to protect you in case of a medical emergency, death of your spouse, or other serious mishaps. But even more than that, there are people who do need life insurance for protection. If you have any children, there is a good chance that you will need to pay for their future medical cost as well. If you are in this situation and you need to find a good life insurance policy, you’ll want to do your research and find the best deal possible, so that
The complementary guarantees of life insurance are coverage options to the main ones, both for the risk of death and for survival. It should be noted that the complementary guarantees of life insurance, in general, cannot be contracted beyond 65 years (although the main guarantee does allow it).
Main complementary guarantees of life insurance
The main complementary guarantees that can be contracted together with life insurance are the following:
- Absolute and permanent disability
- Accidental death
- Death due to traffic accident
- Absolute and permanent disability due to accident
- Absolute and permanent disability due to traffic accident
- Temporary disability
- Serious diseases
- Accident health care
- Hospitalization and surgery
- Capital for orphanhood (due to death of parents)
- Exemption from premium payments for absolute and permanent disability
We take closer look at the most important ones below.
Invalidity and disability
One of the “star” coverage’s of life insurance is absolute and permanent disability. In addition, other coverage for disability and professional disability can be contracted. When contracting this coverage, the insured may request the payment of a benefit. This benefit can be of several types:
Benefit in the form of disability income
Exemption from the payment of the main life insurance premium (the policyholder will not pay more premiums, but his life insurance will remain valid until agreed).
Advance of the insured capital or an additional capital
Some life insurance policies contemplate special conditions if the foreseen risk (death or disability) occurs as a result of an accident. They even specify and further extend the guarantees if it is a traffic accident. The accidental death guarantee assumes that the beneficiary receives double the insured capital. Some insurances include triple capital if the death is in a traffic accident.
This coverage guarantees an advance payment for serious illness. This advance payment is a percentage of the insured capital. Each company stipulates both the percentage and the list of diseases considered serious.
Some life insurance policies offer the option of contracting dependency coverage that would guarantee the advance payment of the insured capital. It is important to carefully review the conditions, because it is usually necessary for the insured to remain in a state of severe dependency and great dependency in order to request compensation. Disability derived from accident and illness would be covered.
Life insurance policies are a great way to fund the things you don’t want to do but need to. If you have something that you know you’ll need for the future in terms of money. Buying an insurance policy can help you get it when you need it most. Many people buy their life insurance policies themselves. While this is not a bad idea, it’s usually not the method to use.