Do you understand how life insurance works? It is an excellent way to protect your family in the event of an incident.
By taking out insurance, you guarantee the well-being of those you love and prevent unforeseen circumstances from compromising the safety of everything you have achieved.
How does life insurance work?
This service offers different policies according to the desired coverage. When buying, the greater the risks assessed, the higher the monthly fee will be. That is why it is important to evaluate the available plans well in order to be able to choose an offer that meets your demand with the price you can afford.
One aspect that few people know is that life insurance does not only indemnify in cases of death, but it can also help in circumstances of accidents that lead to disability and serious illness, which can compromise the source of family income.
Thus, when one of the situations provided for in the policy occurs, the insurer pays the indemnity to the indicated beneficiary.
What are the rules of life insurance?
Insured health status
At the time of buying, an analysis of the health and lifestyle of the insured is made to determine the value of the insurance. The main items considered are histories of diseases, alcoholism, smoking, and physical inactivity.
It is important to make only true statements in the assessment so as not to compromise the payment of compensation if you need to. If the insurer identifies any false or missing information, the premium may not be paid.
In most cases, insurers do not accept that people over 65 take out life insurance. In some plans this age is even lower, dropping to 60 years. This is because the older we get, the greater the risk of death. However, if the policyholder has already purchased a policy before reaching the age limit, the contract can be renewed without hindrance, depending on the insurance rules.
Age is also used to establish the amount to be paid in monthly fees, as is done in health plans – again because people with a longer life are more likely to acquire diseases and die. It is worth mentioning here that the personal accident plan does not make this type of distinction between young and old.
Indication of beneficiaries
The life insurance indemnity is not part of the inheritance. In this way, the insured can choose anyone to be the beneficiary – even those who have no socio-affective relationship and inbreeding. In addition, it is possible to link the policy to more than one beneficiary, as long as the contracted plan allows this option.