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Is it possible to contract several life insurance policies at the same time

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several life insurance policies at the same time

Each insurer will pay the indemnity according to the insured capital contracted.

You can buy as many life insurances as you want, at the same time, from different insurers or at the same. There is no limit on the payment of compensation. Each insurer will pay the indemnity according to the contracted insured capital.

However, the insurer may limit the maximum values ​​for buying, respecting its technical acceptance limit. When you sign the insurance proposal or make changes to your policy in relation to the indemnity amount, the insurer may ask you to inform if you have other life insurance. However, the insurer will not be able to compel you to report the purchase of other life insurance if they are taken out after your policy starts.

The form of payment of insurance premiums will be at the discretion of the insured, according to their convenience and defined at the time of contracting. It may be monthly, bimonthly, quarterly, quarterly, half-yearly, or annually.

Life insurance on a pay-as-you-go basis is not an investment, so it does not allow you to redeem or return the amounts you paid. By taking out this insurance, you will be looking for compensation for a harmful event in your life, in the event of a claim (death, disability, illness, loss of income, inability to exercise the activity, etc.). If there is a claim, the insurer will pay the indemnity corresponding to the insured capital, according to the coverage contract. In general, insurance plans follow the pay-as-you-go financial regime, which does not allow redemption or refund of premiums paid, either to the insured or to their dependents.

When you receive the individual insurance policy, check that the coverage and the amounts of the insured capital are the ones that you contracted so that there are no doubts when paying the indemnity.

Do not pay insurance in cash or with bearer checks or provide your details or make payments to people who come to you in person or by phone, on the grounds that the information is necessary to release the claim. Insurers don’t do that. It is advisable to look for a qualified and trusted broker to mediate the contracting of the insurance, which should be the same one who will take care of the settlement of the claim.

Find out how much life insurance costs and how it is calculated

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Find out how much life insurance costs and how it is calculated

There are several characteristics that are considered to define the price of life insurance.

The price of insurance varies according to the value of the insured capital that is intended to receive indemnity, the age of the insured, and the risk that it represents in view of the possibility of the risk covered by the policy. Healthy lifestyle habits, sports (provided they are not radical) or physical activities, the balance between weight and height, not being a smoker, and having a less stressful and less risky profession contribute positively to the price of insurance.

The cost of life insurance will also be higher or lower according to the amount of indemnity (insured capital) intended for the additional coverages you hire. In the natural process of life, the probability of death increases with increasing age, which increases the risk of indemnification for the insurer.

Thus, it is very common for the premium for plans structured by age or age group to be recalculated each year or each age group change. Another reason for the premium to rise is the increase in the value of the contracted insured capital.

Age range

It is noteworthy that in plans structured by age or age range, the increase in the amount of insured capital (indemnity) does not follow, in the same proportion of periodicity, the premium adjustment (insurance price).

However, premium and insured capital are updated each year, according to the inflation variation index that appears in the general conditions of the contracted insurance plan. In an individual policy, life insurance tends to cost more, due to the personalized coverage. The collective plan, on the other hand, is usually more affordable, as it dilutes the risk in a group of people.

The drawback is that the insured capital values ​​may be lower and the coverages less comprehensive. This is because the definitions of values ​​and coverage of the collective policy are previously negotiated by the representative of the company, institution, union, association, etc. and it is not always possible to establish different criteria per insured.

Insurance industry: career for those who like to deal with risks

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Insurance industry: career for those who like to deal with risks

Understand how the insurance industry works and the challenge of protecting your customers from unpredictable events by turning this into a profitable activity

The insurance market constitutes a multi-million dollar industry worldwide, made up of companies and people who develop insurance policies and work in the sale, administration, and regulation of these services.

Today, there are very few items of value that cannot be insured, although the most common types of insurance involve business, vehicles, real estate, rent, and health problems.

What is behind the success of this industry is the risk management activity. This is because insurance is nothing more than a risk transfer service, in which the insurance company protects people and companies against the risk of unpredictable events occurring and which would represent great financial losses for them.

To offer this guarantee, the company receives a fee from all its customers, charged from time to time. In industry jargon, this fee is called a ‘premium’, while the customer is treated as a ‘policyholder’ (the document that formalizes the contract between the insurer and insured). If the event specified in the policy occurs, the customer receives compensation from the insurer.

To be successful, the insurer must make sure that it has earned enough money from the premiums to offset the expenses it will have to reimburse customers for damages and losses while maintaining a profit. It may seem like a simple procedure, but it is an extremely sophisticated analysis and calculation mechanism.

Calculation of risks The final account only closes when the risk that each individual or company represents is calculated with great precision. A banal example: wooden houses, for example, have a greater risk of fire than those made of bricks, in the same way, that a customer’s history of fines says a lot about the chances of him getting involved in an automobile accident.

This process of analyzing whether the risk is worth it or not is called underwriting and is one of the most crucial activities within an insurance company. This is an in-depth study, which takes into account several factors to try to establish what are the chances of this client needing to call the insurance company to reimburse losses in a certain type of insurance.

It is the analysis made by the underwriting team that will determine whether or not the insurance company will close the contract, and under what price plan. The lower the risk, the lower the premium.

If the risks are poorly calculated, the value of the premiums will not be sufficient to cover the company’s expenses. In other words, if underwriters (also called underwriters) assume that the probability of an event happening is very low, the fee charged to each customer will also below. If the event, contrary to what was predicted, occurs for many customers, the insurer comes out at a loss.

Crisis situations: scenario that took insurers by surprise occurred during the 2008 financial crisis. The American International Group (AIG), the largest insurance company in the United States, recorded a loss of more than $ 99 billion in the year and needed financial support from the Federal Reserve (FED – kind of central bank of the United States) to not go bankrupt.

To understand what happened, an initial explanation is worth: AIG’s main business is selling insurance, but not just the more traditional types, such as real estate or health insurance. The company also provides more complex services to meet the demand for large companies, especially banks.

To protect their large operations, banks often hire insurance companies to help them in case their business goes wrong, and they pay a high price for it. In this way, AIG insures financial institutions worldwide against risks.

Virtually no insurance company was able to predict the risks behind subprime real estate loans, a type of loan practiced by several banks that were AIG customers. When this type of credit triggered the financial crisis, the banks lost a lot of money and started to activate the contracts they had signed with AIG, forcing the insurance company to pay huge refunds. The account, in this case, clearly did not close, leading the company to a state of technical bankruptcy that was only overcome through government aid through the FED.

Industry workers, It’s not just underwriters who deal with risk management within an insurance company. In the company, professionals are known as actuaries also play an important role in this activity.

It is up to them to look at the latest trends and statistics for a specific occurrence (be it fire, theft, death, car accidents, etc.) and use this information to build probability and risk prediction tables. These professionals, who constantly calculate risks, are involved in several processes in the insurance company, including the subscription itself, but also the definition of pricing policies, product development, investments, and customer claims.

Professionals in the actuarial field must appreciate solving problems through data analysis and modeling and are often motivated by working with computers and formulas.

The truth is that, in an industry built around the idea of ​​risk, all professionals must have an affinity with this theme. From executives in managerial positions, such as directors and presidents, to the other end of the organization chart, where sales agents are located – the objective, in the latter case, is to sell insurance policies, and these professionals must know how to assess risk associated with each customer and recommend a product that adapts to their needs, while at the same time not making the insurer take unnecessary risks.

What is important to know before Purchasing life insurance

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Life insurance is not just a service for older people.

Life insurance has the main objective of guaranteeing the financial protection of those you would like to see supported in your absence. This protection does not only work in the event of the death of the provider, it can also be used in other situations such as serious illnesses, accidents, and other unforeseen events that may harm your financial security and that of your family.

Insurance protection can be for a lifetime or for a fixed period of time, with coverage for five to 30 years, for example. In the case of temporary insurance, when the contract ends, protection ends.

The product, however, cannot be confused with an investment, warn experts. The correct thing is to understand life insurance as financial protection in case of unforeseen circumstances.

life insurance for …..

Life insurance is not only a service for older people, in fact, but it can also be taken out by young people and this earlier hire can even be a favorable point.

But what would be the ideal time to take out insurance? Now. You never know when unforeseen events can happen and, taking out insurance as soon as possible can bring more peace of mind to your decisions and plan your future and those you intend to protect, in addition to a more attractive price.

In the event of unforeseen events, insurance can pay compensation in the diagnosis of a disease, avoiding, for example, that you need to sell your assets or use your applications. In other cases, life insurance can offer liquidity to the heirs, facilitating the inventory process.

Because of this, when hiring life insurance keep in mind that it is important to map all your needs and / or the needs of those you want to offer financial security in the case of your early absence, preferably with the help of a specialized professional.

What is the difference between individual and group life insurance?

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difference between individual and group life insurance

Check the differences between these two products and which one best suits your needs.

The big difference between individual and group life insurance is the level of personalization. In general, group life insurance meets basic needs, common to a group of people, linked together by a bond or common interest.

Individual life insurance is a product adjusted to the needs of each client. This type of insurance is contracted directly by the insured, who receives his policy according to the chosen plan. In order to personalize the product, in general, a complete analysis of the insured is made considering a series of factors such as profession, financial responsibilities to the family, sports practices, and health history, for example.

Individual life insurance offers specific and adjustable protections, according to the style, age, and standard of living of each client. In these cases, depending on the insurance company, it is also possible to opt for complementary coverages such as funeral assistance and receipt of insured rates for periods of hospitalization.

But, after all, how does group life insurance work?

Group life insurance is generally used by companies to ensure the safety of their employees and, thus, demonstrate commitment. Offering this benefit is quite common among companies today. Thus, group life insurance is a product that serves employees and/or business owners.

The number of employees required for hiring varies with insurers. But in general, collective plans are offered, with coverage from three or even two employees and minimum ages, usually between 14 and 60 years old.

As it is not a product with a high level of personalization and, in general, it meets the basic needs of the customer, the values ​​of these insurances are usually lower and cease to exist when the company leaves the company. Therefore, for more specific and long-term protection, it is interesting to seek qualified advice and individual insurance.

The difference between life insurance and pension

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The difference between life insurance and pension

Some people may be confused when choosing between life insurance or a private pension plan.

The pension plan aims to be long-term savings, that is, it is part of your retirement planning. Social security is a way for you to save today to have a reserve when you stop working.

Life insurance is an immediate protection. With the policy in hand, whenever an event is covered by the policy occurs, the insured or the beneficiary receives what was agreed upon when contracting the insurance.

Both protections are important for a successful financial strategy.

Private pension

Private Pension was born to complement Social Security and compose the retirement planning of clients.

Usually, banks and independent insurers offer this type of product. In private pension plans, the customer chooses the amount of the contribution and the frequency with which it will be made. The amount to be received will be based on the contribution that was made and the results of the financial investments linked to the plan.

Life insurance

Life insurance is considered a protection against unforeseen circumstances. So, contrary to what many people imagine, it is a product suitable for people of all ages. If you have someone you would like to support in your absence, then you should hire this service.

After all, this is the goal of life insurance: to guarantee the financial security of your dependents for a certain period of time if you are unable to do so and cannot be confused with a private pension plan.

Do you know the life insurance market?

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Do you know the life insurance market?

The life insurance market has existed in the USA since the empire, but there are still many doubts about its importance and the benefits it contemplates. The most common of these is to believe that life insurance only serves to financially protect the family in the event of the death of the insured. Do you know what the others are?

See below for 5 useful information about these products that still confuse the population.

1. Product is not used only in case of death

When it comes to life insurance, we automatically think of the cases in which the insured person dies. However, there are other options for broader protections against countless life hazards.

Imagine, for example, that a patient has been diagnosed with cancer. In addition to the health risk, the disease can compromise the insured’s and his family’s income. Therefore, there are several products available on the market that include protection in case of serious illnesses.

There are other coverages, such as in the case of medical procedures, hospitalization, accidental disability, and anticipation of receipts in case of terminal illnesses. Some products are characterized by the constitution of a redemption value after a certain period of effectiveness of the policy. For these types of products, it is worth noting that the formation of redemption value is not to be confused with a private pension.

Life insurance can still be customized for different health profiles and lifestyles, such as different risk analysis for people in risk professions or hobbies. Therefore, it is important to know all the options and be sure about the ones that best suit your profile before signing the contract.

2. Life insurance does not equate to private pension or retirement

In the last few years, the life insurance category has become popular in which the insured can, at the end of the agreed period, redeem part of the amount constituted over the years even if the claim does not occur.

Contrary to what many people imagine, this redeemable life insurance should not be confused with a private pension, retirement, or any other type of investment. This is because the main objective of life insurance is the financial protection of the insured and the family in the event of a risk provided for in the insurance contract, different from the private pension plan, for example, in which the purpose is to build the necessary financial reserve to guarantee the quality of life during the retirement years.

3. Importance for young people and singles

It is common to think that life insurance is only useful for older people. But the reality is not so, since young people and singles can use life insurance in their own financial planning and that of their family. The numbers confirm that this segment is, in fact, growing.

Unforeseen events can occur at any time in our lives. Although less likely to develop serious illnesses or trigger a claim, it is important that people in this age group are also protected. Young people normally fall into a lower risk category, which reduces the premiums paid. But the more that decision is postponed, the greater the chance of any situation occurring that places the insured potential in a higher risk profile.

Likewise, singles and no dependents who plan to start a family in the future should also think about it and, if applicable, hire the product while prices are more attractive.

4. Affordable costs for different customer profiles

Asked why they did not take out life insurance, many would say it is because there are not enough financial resources to do so. What some people don’t know is that there are customized insurance options for each customer profile.

As with car insurance, a prior risk analysis is carried out, and the price can fluctuate according to numerous variables, such as age, compensation amount, healthy habits, family medical history, among others.

5. Business plan may not be enough

Many companies offer a corporate life insurance plan, but these products do not always fully meet customers’ needs. It is important to calculate whether, in the event of an event, the contracted plan will in fact offer the desired coverage. It is also relevant to read the terms of the contract carefully to see if, in the event of dismissal or job change, there will still be insurance coverage.

Since these products involve many features, including a number of optional benefits, it can be difficult to fit your needs into a particular group. To better meet the demands, it is possible that personalized life insurance is the most appropriate option.

Insurance solutions can also be used in life

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Insurance solutions can also be used in life

Insurance can bring benefits in situations such as disability and serious illnesses

There are many people who understand that life insurance is death only as a cover. In fact, this type of product is just one of several options that the market offers.

Coverages whose beneficiary is the client and, therefore, are used in life, are also good alternatives for financial planning.

The insurance for disability exists to ensure that the customer will bear the costs under their responsibility if you become unable to generate income due to an unforeseen caused by accident or illness.

The purpose of this type of coverage is to guarantee peace of mind for income protection.

For temporary cases, a solution in the life insurance market is Temporary Disability Daily (DIT) coverage. “In general, the operation of this product is very simple.

In the case of temporary leave from work, caused by accident or illness, the client receives a daily rate, observing the value and specifics of the contracted plan ”.

What if you were diagnosed with diseases like cancer, Alzheimer’s disease, stroke, or acute myocardial infarction? Would it be important to have a reserve for specific treatment without affecting your savings?

It is for this purpose that insurers offer the coverage of Serious Diseases.

“Serious Illness insurance is complete protection designed to support you in the discovery of more complex health problems.

With it, in the case of diagnosis of any of the more than ten covered diseases, you receive the contracted amount at once to help with treatment expenses or other expenses ”.

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