How is life insurance coverage?
One of the biggest myths in relation to life insurance is related to the fact that many people still believe that this type of policy offers coverage only for scenarios of death of the insured person.
In fact, this is just one of the possible situations covered by this contract, which, in addition to accidental or natural death, insurance can also cover disability caused by illness or accidents or other situations.
Let’s learn more about each of the possible life insurance coverage?
The most traditional coverage is also the most basic of this modality, and may include death from natural or accidental causes. However, it is worth paying attention to the conditions of the contract, as some companies determine exceptions, that is, situations that are not covered.
The policy can also guarantee indemnity in life for the insured person, in cases of illness or accident that causes total or partial loss of movement or that affects the functioning of the organs .
In this sense, disability coverage can be total or partial permanent due to an accident and cover loss, reduction or total or partial permanent disability of a limb or organ due to physical injury.
Coverage for total or partial permanent disability due to illness guarantees compensation if the insured person discovers a limiting illness that makes him unable to work.
For broader protection for the insured person and his beneficiaries, insurers usually offer additional coverage that can be combined, as desired by the contractor.
Funeral aid , which guarantees reimbursement of funeral expenses, is one of them. Another option is funeral assistance , in which the insurer does not reimburse, but pays for the services, which must necessarily be performed by a company indicated by it.
Among the additional coverage, life insurance can also cover hospitalization due to an accident or surgical event , for cases of accidents that require hospitalization or surgery.
What diseases does life insurance cover?
The policy may also have coverage for serious illnesses . Usually, it is used by people who are predisposed to developing diseases due to family history, for example.
However, the truth is that we can all have a more serious problem and being forewarned is the best way to deal with circumstances of this type, in which the expenses with consultations and exams and the costs of treatments and medications can be quite high.
Thus, this additional coverage gives the right to compensation if the insured person is diagnosed with any of the diseases covered by the contract during its term.
Illnesses covered by life insurance may vary by insurer . However, normally, among the most common coverages are issues such as:
- Acute myocardial infarction;
- Multiple sclerosis;
- Heart attack;
- Organ transplantation;
- End-stage renal failure;
- Limb paralysis.
Policies may also cover open coronary artery bypass surgery and bypass surgery.
In addition, other conditions and situations may also be included in the contract, such as problems arising from unlawful acts, childbirth or abortion, suicide or attempted suicide, intoxication, anaphylactic shock and sequelae, among others.
What is the best age to buy life insurance?
One of the most common questions regarding life insurance is whether there is an ideal age to take out the policy. By the way, there is a myth that she should be hired only by people of a certain age.
In fact, there is no ideal age to take out this type of insurance , that is, young people, adults and the elderly can take it out. And more: the sooner, the better! This is because, the younger the insured person, the lower the premium amount to be paid, as the risks for the insurer are lower.
Insurers can even refuse to sell a life insurance contract to people over 60 years of age, even if the law prevents applications from policyholders with an aggravated health risk or a disability being refused.
Another point to be considered is that the sooner it is contracted, the smaller the impact of insurance on family income, as young people tend to have fewer expenses than an older adult. And, yes, single people with no family can start paying for the policy now.
What types of life insurance exist?
The Brazilian market offers different types of life insurance, which meet the most diverse needs and conditions, as well as policies of other types. Let’s briefly discuss each of them.
The most classic of life insurance guarantees protection to beneficiaries in the event of the death of the insured, due to an accident or illness. But as we have already mentioned, it can also be triggered while still alive, if a serious illness affects the insured person or if he becomes temporarily or permanently disabled.
As the name implies, it allows a portion of the amounts paid to be recovered . Insurance can offer the same coverage as the traditional one, but if no accident occurs, after a certain period, the amount invested can be redeemed – corrected and with interest, according to inflation.
Life insurance can be temporary, being indicated for financing a property or paying for something like a child’s college. In this case, if the insured dies during the period specified in the policy, the commitment will be honored by the insurer.
group life insurance
This modality can be contracted by companies or organizations in order to cover the risk of a group of policyholders who have a bond or interest in common. Thus, it is used by organizations to offer life insurance as a benefit to employees and interns.
In the case of employees in general, when there is no legal obligation, entrepreneurs can opt for two premium payment models. In the non-contributory model , the company pays the full amount, in the contributory model , the employee pays part or all of the insurance and the amount is deducted from the payroll.
Advantages of life insurance for companies
Group life insurance is also a modality that is growing in Brazil, as it offers a series of advantages for companies. In the first place, offering the benefit protects the employer, in case he becomes responsible for an incident, for example.
In addition, it is an efficient way to bring more peace of mind to employees and their families and, consequently, to show care and protection for them. This appreciation also helps attract distinguished professionals and improve partner engagement .
What to know before taking out life insurance?
First of all, it should be known that the purchase of life insurance must be carried out through an insurance broker , who will help in choosing the best option for the needs of the insured person or the company and will act as an intermediary in the negotiation with the insurer.
Another important tip is to do a good research on the coverage offered by insurance companies and be clear about what is essential for you , for example, if you need to negotiate. As we have seen, there are coverages that can only be used in case of death and others to be used in life.
In addition, before closing the agreement with the chosen insurance company, it is convenient to pay attention to the grace periods and policy exclusions . These contracts rarely have a grace period, but they may for some situations. In the case of exceptions, it is not uncommon to have circumstances not covered, so be aware.
Life insurance is an essential item for protecting families and, as we have seen, it brings many benefits to policyholders and companies — in the case of group life insurance. Therefore, not by chance, the modality is growing in the country.
Before hiring, it is important to be aware of your needs and pay attention to the details of the contract to avoid unwanted situations. Furthermore, it is essential to have an agile and reliable insurance brokerage to help you throughout the hiring process.