Taking out life insurance can be one of the most important decisions you can make in your life. guaranteeing your family's financial peace of mind in case of unforeseen events. However, many people are unaware of exactly what life insurance covers and what its main benefits are.
In this article, we will explain in detail the most common coverages. In addition, we will tell you which deaths are covered by life insurance and which illnesses, as well as which other guarantees are not covered.
What does life insurance cover?
A life insurance policy is a contract between the policyholder (the person who takes out the policy) and the insurer, in which the latter guarantees the payment of a capital sum insured to designated beneficiaries, The insured person is insured in the event of the occurrence of any of the events included in the insurance cover.
But what are these events and what does life insurance normally cover? Let's take a look:
Death of the insured
This is the primary coverage of any life insurance policy. In the event of death, whether from natural causes, illness or accident, the beneficiaries receive an indemnity to help them to expenses such as debts, mortgages or maintaining their standard of living.
What kind of death is covered by life insurance? In general, a life insurance policy covers both natural deaths and deaths caused by an accident. traffic or other types of accident. Some insurances even offer double or triple capital in the event of death due to an accident or traffic accident.
Absolute or total permanent disability
If the insured suffers a disability that prevents him/her from carrying out any occupational activity, The insurance may include an indemnity. Depending on the policy, this disability cover may be:
- Absolute permanent disability. The insured person cannot carry out any work activity.
- Total permanent disability. Disability limits the insured person to certain professions. This is the option that we recommend in our article on life and disability insurance, The Social Security system recognises it on many more occasions.
Serious illnesses
And what about illness? Indeed, in addition to covering death or disability, they also there are illnesses that are covered by life insurance, such as cancer, heart attack or kidney failure. Although it depends on each policy, some issues are covered, and it is an unusual coverage to subscribe to, but no less recommendable for that reason.
In these cases, the insured person receives an advance of the capital, which can be additional or deducted from the total, according to the conditions of the contract. This coverage is particularly useful for expenses arising from medical treatment.
What is not covered by life insurance?
As you can see, there are many situations that are covered by life insurance, although, of course, there are also certain exclusions.
Among the most common cases that are not covered by life insurance are the following:
- Suicide. In most policies, it is not covered if it occurs in the first year of the contract.
- Death due to hazardous activities. Death due to activities such as extreme sports may be excluded, unless expressly stated in the insurance.
- Deaths resulting from unlawful acts. If the insured dies while committing a crime, the insurer will also not compensate the beneficiaries.
Up to what age does life insurance cover?
Another common question is up to what age a life insurance policy covers. Because yes: unfortunately, life insurance coverage is limited by the age of the insured.
Generally, policies cover up to the age of 65 or 70 for disability; while for death they may extend beyond that (up to the age of 80), depending on the insurer and the type of insurance you take out.
For reasons such as these, it is essential to choose your life insurance wisely and do it with the help of an expert. Like insurance comparator, At Moné we can help you understand the limits of each policy and find one that suits your needs.
Additional coverages that can make a difference
In addition, at Moné we have first-hand knowledge of the best life insurances market.
Which ones are they? Well, they are usually policies that, in addition to the basic coverage, offer additional options that can be very useful to you.
For example:
- Double and triple capital for accidents. If the death of the insured occurs due to an accident or traffic accident, the beneficiaries can receive up to three times the insured capital in some policies.
- Coverage for specific diseases. It includes a list of serious illnesses and provides you with financial support for their treatment.
- Partial disability cover. Although not absolute, some policies offer compensation for partial disability. This is common in accident insurance.
How to choose the best life insurance?
If you are going to take out a life insurance policy and you are concerned about its cover, remember that the first thing you need to do is to analyse your needs and those of your family. You will have to take into account factors such as the sum insured, the flexibility of the policy and the strength of your insurer, among many others.
Don't forget that, at PIB Group Iberia, our team of experts is at your disposal if you need them. We know how important it is to ensure your family's financial security. That's why, we are committed to finding the life insurance in Zaragoza best suited to you.
Don't wait any longer to protect your future and that of your loved ones, contact us!
