Life Insurance Protects you and yourself. Despite being one of the most important insurances, not all Portuguese people know its value. Know that life insurance can also cover disability, in addition to covering tolerance for death due to illness or accident.
Because it is such an important topic and questions can arise, let’s answer 5 important questions about life insurance. Keep reading the article and learn more!
1. Why take out life insurance?
The main reason that leads a person to take out life insurance is risk. Issues like death and disability are not very attractive topics but they need to be discussed. The best way to protect yourself in more difficult situations is to prevent more vulnerable situations over time. By doing this, you will gain a greater sense of security, inner peace, and inner peace.
Life insurance is an investment in your financial security that protects you and your family from the unexpected. For example, we are talking about a diagnosis of a serious illness or even a disability, which necessarily means loss of income due to inability to work and, in any case, unexpected and significant expenses!
2. How does the hiring process work?
The process of contracting a life insurance is identical to that of any other. That is, it is made effective by signing a policy. It is important to know that the policy includes some key elements such as:
- Award – Amount due and frequency of such payments;
- Covered – Expected events that the insurer is responsible for covering;
- Exclusions – Events for which insurance cannot be activated;
- grace period – Period of time during which the insured cannot enjoy the benefits, even if he is already paying the premium .
The policy contains a series of important information, such as: who is the policyholder, general and special conditions, excluded risks, among others.
3. What coverage can I include in life insurance?
Coverage is one of the basic points of insurance. If the protection in case of death is guaranteed from the beginning, the client can choose between one of the two options that protect him in case of disability:
- Absolute and definitive disability (ESO) – When the insured, due to illness or accident, becomes disabled, forcing them to depend on third parties for vital functions, such as moving around, taking care of their hygiene, eating, etc.;
- Total and Permanent Disability (ITP) – When, due to illness or injury, the following situations occur:
- Inability to work;
- Permanent functional disability, clinically proven, of a degree equal to or greater, normally, 60% or 65% (determined by the national disability table in force in the Social Security).
In any case, you should know that some serious illnesses may not activate life insurance, since they do not imply a disability situation like the ones mentioned above.
4. What are the exclusions?
There are various exclusions associated with life insurance, which differ for different insurance companies and insurers, and it is important to be aware of them before signing a contract. Some examples are:
- Suicide;
- Natural disasters.
- Alcohol or drug use;
- Accident while carrying out dangerous activities;
- Weaknesses that are not considered totally disabling;
- Material damage intentionally caused by the beneficiary of the insurance.
5. How is the cost of life insurance calculated?
The calculation of life insurance premiums depends on several factors. In addition to the required coverage, a person’s age, medical history, and habits also matter. Anything that increases your risk of death will affect the monthly value of your coverage.
One of the most important sources of information that insurance companies require from claimants to make this calculation is a medical questionnaire, which contains a series of easy-to-answer questions. The insurance company will inform you if more information (or evidence) is required.
Despite the simplicity of the questionnaire, it must be completed carefully as it ensures that important information about the insured’s health is conveyed. Always respond with the utmost truthfulness since it is considered a claim policy if the information is incorrect or omitted voluntarily. void and the insurer is not responsible for payment of the claim.
6. How to choose the most suitable life insurance?
To choose the most favorable life insurance policy, it is important to understand that cost is not the only factor in this equation. When making your decision, consider not only the impact of premiums on your budget, but also the cheapest option, which protects you the least and may be more expensive.
Since the purpose of this investment is to protect you against unforeseen events in the future, you should avoid cutting your coverage, as subtraction may not pay off!
Life insurance is your guarantee for your future and your shield and yours. At SEGURO DS, you can count on close monitoring and adequate support to find the best option for you. Our alliances with practically all the insurance companies in the country allow us to offer a wide and diverse range of services. Discover the best insurance for you today!