Life Insurance: You Must Know

By | January 7, 2022

With the pandemic, there is an even greater search for life insurance. Its benefits, and its different kinds. The subject has become well known and has aroused interest for all age groups. First of all, it should be explained that conventional life insurance. Which is usually contracted at the bank has an annual validity period. In this case, if there is a new risk the institution must be informed. So that the update can be carried out. This is a very important detail that is often not considered important by the insured. this can cause problems for the family at the time of awarding compensation.

There are several types of life insurance: temporary, whole life, perpetual, and universal. In addition, there is also group life insurance and personal accident insurance. This article explains how each one works.

Temporary Life Insurance

According to their need for coverage, the insured can purchase life insurance with a term of more than one year. This will reduce the risk, impact, and cost of the contract within that timeframe. Temporary Life Insurance can be an excellent means of protection at this stage of life where income is very important for the family and must be protected.

Lifetime Life Insurance

This is a type of insurance that maintains life coverage. By contracting it, savings also accumulate over the years. There comes a time when you have to choose between withdrawing all your savings or continuing to have insurance. But, on the other hand, savings can also pay for insurance coverage for a certain period, without the insured having to pay monthly. However, it will make insurance limited when this fee expires. This is an alternative that can occur during life to ensure serenity.

Endowment Life Insurance

This insurance is not very well known. Endowment Life Insurance is a type of exchangeable insurance that combines temporary insurance with whole life insurance. Dotal sets the length of coverage, but also accumulates savings very much like ‘life insurance’. This is a protection tool, not an investment tool.

Universal Life Insurance

Insurance originating from the United States was launched in Brazil. Universal Life Insurance brings together the best features of all life insurance in just one product. In terms of flexibility and cost-effectiveness to customers, this product makes a lot of sense, because the savings component of Vida Universal becomes a real Private Pension Fund and makes a lot of difference in the future. Customers can pay for insurance through pension portability. If at any time they no longer need insurance coverage, transfer the balance to the vigil.

Group Life Insurance

The ideal type of insurance for companies. This insurance is often specified by a Collective Labor Agreement for certain professional categories or as a benefit to employees. The term is one year and the risk of the policy must be reassessed for renewal. There are several different and interesting types of Group Life Insurance.

Personal Accident (AP)

Aimed at “situations” that could occur due to an accident, accidental death, accidental disability, hospital expenses, among other coverages. It is important to know that this insurance does not cover natural death. This is interesting insurance, but it shouldn’t be the only life coverage you should have.

We can see that there are several life insurance policies to choose from according to your current and future needs. It is he who will guarantee your protection, the financial and social sustainability that your family deserves

Lifetime coverage

But how does lifetime coverage work? Doubt has become increasingly common in the past year, with an increase in young people taking out life insurance. Naturally, when buying life insurance, the first coverage that comes to mind is death. But this product is more than that. This product offers protection for needs that may occur in life such as Disabilities (temporary or permanent, functional or occupational). This product also covers illness, hospitalization rates, and reimbursement of medical and dental expenses.

IPA (Disability due to Accident) is designed to cover situations where the loss of function or loss of a limb occurs due to an accident. This is compensated with a previously agreed value. Each part of the body can have a different impact according to the profession of each infected person. A surgeon who lost his thumb, an athlete who lost his leg, a physical therapist who lost movement in his arm. Therefore, it is possible to contract for increased coverage, increasing the value of the compensation.

The IFPD (Functional Disability due to Illness) covers situations of loss of personal autonomy due to illness covered under the policy. The insured will eventually need help to carry out their daily functions, such as eating, communicating, or getting around. To cover temporary disability situations regarding work, there is a DIT (Temporary Disability Day). In this case, regardless of the reason for the accident or illness, insurance offers income, which must be equal to or less than the income earned by the person in his employment. It is common to have a waiting period (reduced) to activate insurance, preventing it from being used for less serious health problems.

‘Severe Illness’ coverage

‘Severe Illness’ coverage is diagnostic coverage, which is not directly related to the cost of treating the disease. If one of the diseases listed in the policy is diagnosed, the insured receives a certain amount of cash. The money can be used to improve their quality of life, make adjustments in their place of residence, pay for expenses not covered by health insurance, or have additional income. Cancer, stroke, kidney failure, loss of vision, hearing or speech, heart attack, Parkinson’s, and Alzheimer’s are some of the diseases covered by this type of product.

Daily Hospitalization Allowance

Daily Hospitalization Allowance is a predetermined amount of coverage for each day while the insured remains hospitalized (not related to hospital bills). If health insurance covers hospitalization costs, this product can be used to receive income during the hospitalization period. For cases where the insured does not have a Health Plan, this product helps pay hospital bills.

DMHO coverage (medical, hospital, and dental costs) is widely used by companies as a complement to health insurance. When the health plan has a limited network in the city where the employee lives and requires medical treatment on a business trip for example. In this case, the insured pays the costs and asks for reimbursement.

There are many possible safeguards for situations over which we have no control. Knowing these different options according to what makes sense for your life is always the best way.

 

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