Thinking of taking out life insurance? In this article we offer you a series of very useful recommendations so that you know what you should take into account and what you should do to avoid having problems.
What is a insurance of life
Life insurance is a contract by which the insurer will pay the stipulated benefit if the insured dies before the insured date, in the case of death insurance, or if he survives on a certain date, in the case of life insurance. survival, all in exchange for an annual premium that depends on various factors, such as the insured amount, the coverage provided or the age of the insured, among others.
Recommendations for taking out life insurance: before signing the policy
In addition to the general recommendations before taking out any insurance, in the case of life insurance it is necessary to consider the following before signing the policy:
Check that the policy recognizes your right to terminate the contract unilaterally in the first 30 days (if the insurance lasts more than 6 months and investment risks are not assumed).
If you contract life insurance with a financial institution, ask them to clarify if what you are contracting is a banking product or insurance. This way you will avoid confusion and you will be able to appeal to your rights.
Remember, you always have to read the insurance contract before signing, but especially if you contract it with the bank.
Answer the health questionnaire honestly and consult all the doubts that arise, without leaving any question blank. Consult the doubts that arise and always sign the questionnaire.
Review and ask if you need everything related to profitability, liquidity and taxation, as well as the conditions, penalties, expenses and commissions.
If you are offered any type of guarantee, make sure you fully understand what it consists of and how it is applied.
If the policy includes profit sharing, make sure that the entity tells you how they are going to be calculated and assigned, as well as how and when they are going to be communicated.
Recommendations for contracting life insurance: after signing
Once the life insurance is contracted, keep in mind that the insurer must inform you in writing of all the modifications made to the policy with respect to the initial information. Regarding the participation in benefits, do not forget that the insurer must send you information every year about the situation of the same and the method of calculation.
And if your policy has a redemption option (savings life insurance), review the conditions carefully to find out how the amount you will receive is calculated, as well as the penalties that may be applied. In any case, you have the right to request that the entity clarify the amount received and the penalties applied.
It may happen that the insurer itself is the one who proposes to rescue the life insurance to hire another type of product. In this case, it is necessary to carefully analyze the operation, compare the conditions and take into account not only the penalties, but also how the change will affect your pockets fiscally.
5 tips to choose the most suitable life insurance
Life insurance is the guarantee that offers you the financial support that you and your family would need in case something serious happened to you, that is, due to death from any cause, absolute and permanent disability, accidental death, absolute and permanent disability due to accident and even, according to the company, due to invasive breast cancer. It is very important to detail who will be the beneficiaries of the policy, since if it is not done correctly, in the event of an accident, the compensation would go to the legal heirs of the insured. However, due to the wide variety of products in the current market, we show you 5 tips to choose the most appropriate life insurance in your case.
The first thing you have to assess is the type of life insurance you want to benefit from. If you want a policy to provide financial security to your family in the event that your income is lost or reduced due to death or any type of disability, if you want to protect them in situations of dependency or if, on the other hand, you need insurance life for having a mortgage, among others.
It is essential that you know the coverage to which you will be entitled once you register the policy. In addition, you must know the benefits that you would receive in each case and study the optional guarantees that you can add to your life insurance
Compare life insurance: It is essential to make a comparison of the prices and benefits of the products offered by different companies to choose the most competitive product in each case.
Within the 5 tips to choose the most appropriate life insurance, it is essential to pay special attention to the insured capital since the compensation that the beneficiaries will receive in case of need will depend on it. You must calculate if the amount they would receive covers their financial needs in a given period.
You must study the maximum contracting age established by the insurers for each product, as well as the minimum capital indicated.
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