Check out some tips for those who want to buy life insurance.
How does life insurance work? How much? What guarantees does it offer? Is it the same as personal accident insurance? These and other questions are very common for those who want to buy this type of service. Check it out below.
1. What is life insurance and how does it work?
Life insurance is a contract made with an insurer to guarantee your financial security, as well as that of your dependents, at unexpected times.
You can choose the coverages that meet your demands, and also indicate who will be your beneficiaries – it can be more than one person.
But, after all, what is the amount paid to have these services available? The cost of life insurance may vary according to the coverage selected, depending on your goals and aspects such as age group, profession, sex, and habits of the insured.
Once the contract is made, the insurer is responsible for paying a previously established amount (indemnity) in case any of the accidents contracted in the policy happen.
In these situations, you or your beneficiary must contact the insurer and report what happened. The company will request the submission of the necessary documentation, which must go through an analysis and approval to then release the amount in question.
We remind you that it is very important to notify your loved ones where insurance documents, such as the policy, will be kept to facilitate the process.
2. What is the difference between life insurance and personal accident insurance?
Contrary to what many people think, life insurance is not the same as personal accident insurance. While the former gives the right to compensation in the case of natural death or illness, the latter, although it is more affordable, covers only cases of death or disability caused by accidents.
Some people see life insurance as something they will pay dearly for, but they will never be able to enjoy it, however, these are erroneous thoughts. This is because it can be used in life in specific cases, which we will discuss later.
What’s more, the cost can be much less than we usually pay to protect our car or apartment, for example – and maintaining the family’s quality of life should be a priority.
3. Why you should take out life insurance?
Many people do not include life insurance in their planning, as they do not find themselves facing any fatality. However, unforeseen events happen all the time and, therefore, prevention is always the best solution.
Buying life insurance aims to promote financial protection precisely in the event of some misfortune happening. Therefore, if you have a good quality of life and want to cherish the continuity of this standard, you should consider this option.
Therefore, taking out life insurance shows concern and appreciation for the family, as it guarantees the necessary resources for dependents in times of difficulty. Also, you can enjoy the benefits of life depending on the situation.
4. What are the guarantees for life insurance?
Life insurance guarantees vary according to the contracted plan. However, policies cover accidental or natural death and, in some cases, ensure protection for total or partial permanent disability due to an accident or serious illness.
In detail, when contracting insurance, the contractor and his dependents can have protection against:
- total or partial permanent disability by accident (IPA);
- total permanent disability by accident (IPTA);
- increased permanent disability due to accident (IPAM);
- total permanent functional disability due to disease (IFPD);
- total permanent disability due to illness (ILPD);
- medical, hospital, and dental expenses (DMHO);
- temporary disability benefits (DIT);
- daily rates for hospitalization (IHL);
- serious diseases (DG).
In cases of serious illness, a health plan covers only consultations, basic exams, and hospitalization. He does not pay for the patient’s transportation, special care, and necessary daily remedies.
These values are high and can compromise the family’s financial situation. Thus, it is essential to have life insurance to ensure greater support in relation to these costs.
When buying this service, you receive financial aid for expenses in diagnosing Alzheimer’s, Stroke, cancer, acute myocardial infarction, chronic renal failure, and loss of hearing, speech, or vision.
Other coverages are for limb paralysis, bypass surgery, and heart, liver, marrow, pancreas, lung, or kidney transplants. In this way, moments of family insecurity are taken more easily.
One of the benefits for the insured is the additional indemnity in need of ICU admission. The daily rates are paid for clinical or surgical treatments caused by illness or accident, and which cannot be done at home, office, or clinic. With that, you can do the proper treatment without compromising your income.
5. How to take out life insurance?
To buy life insurance in line with your goals and needs, you must first look for a company that specializes in insurance that offers quality plans and affordable prices.
Having chosen the insurance company, one should understand the coverage available and assess which one is best suited to your family. Next, calculate the insured capital, and, before signing the contract, evaluate factors such as:
lack of the policy;
geographical coverage of coverage;
The maximum amount of insured capital;
product availability under specific policies.
Take advantage and do a simulation to set up the ideal plan thinking about your financial security and that of your dependents.