WHAT IS LIFE INSURANCE?
Best life insurance policy in uk: Susep (Superintendence of Private Insurance) explains that life insurance is protection against fatalities that affect the livelihood of a family, such as death. It provides compensation to reduce losses for the insured or for family members benefiting from the insurance.
It is part of the personal insurance modality, which aims to guarantee payment of indemnity to policyholders or beneficiaries in accordance with the insurance contract, says the entity .
In general, it is associated with the death of a person. And this is a topic , as shown by a survey carried out by Studio Ideias .
But there are other situations in which it can be triggered, such as permanent disability or, in some cases, diagnosis of diseases such as cancer.
HOW DOES THIS TYPE OF INSURANCE WORK?
Life insurance can be purchased from an insurance company or insurance broker. Anyone of legal age can do this.
It is important to think about two things before taking out life insurance. First, on the types of protection you want in insurance. Second, in the monthly amount that can be allocated to pay for life insurance, as it needs to fit in your pocket.
Financial planning is important at this point, as it helps you look for insurance options that are budget-friendly and provide the ideal protection for you and your family.
Once you understand your protection needs and the ideal monthly fee to pay, it’s time to research the product that best suits your needs.
For this, it is important to know that the market offers different types of life insurance, from the simplest with death coverage, to the most complete with other coverage and services that can be used even without triggering the insurance.
Hiring can be done in several ways, either by talking to an insurance broker, or even through digital platforms of insurers and brokers. There are also offers on the banking channel, that is, in your bank’s application you probably have life insurance waiting for you.
When taking out insurance, and depending on the insurer, information about your health history, existence of current and pre-existing diseases, medication use, medical treatments, previous illnesses, among others, may be requested, so that it is possible to compose an offer of according to your profile.
For this, some insurers use the DPS (Personal Health Declaration), which is a questionnaire with questions about the habits and health of the life insurance contractor.
It is through this declaration that they determine the insured’s health status and assess their risk profile. As a result, insurers offer products with coverage and prices customized and according to the customer’s needs.
It is worth noting that you can purchase life insurance with a few clicks and there is no need to share detailed information about your health status. The ideal is to research and define which one is best suited to your needs and those of your family.
Did you find the ideal insurance? It’s time to buy insurance. When this happens, you receive a policy, a document that contains all the details of coverage, insured capital, term, premium amounts, indemnities and beneficiaries.
Best Life Iinsurance Companies in UK
- Royal London
- Scottish Widows
- Canada Life
- Legal & General
Best life insurance Policy in UK
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Who will get the benefits of this life insurance ?
It is the person indicated by the insured to receive the indemnity in case he dies. Spouses and children are usually indicated, but it can also be a friend, neighbor, relative.
If there is no indication of beneficiaries, according to Susep , the compensation will be paid as follows:
- half for the spouse who is not legally separated from the person who has taken out the insurance
- the other half is divided among the heirs of the insured person.
To receive the amounts, documents such as medical reports or certificates indicated in the policy or by the insurance company must be presented, in addition to the documents of the beneficiaries.
The deadline for receiving compensation in the event of a claim (situation provided for in the policy) is a maximum of 30 days after sending the documentation
WHAT DOES LIFE INSURANCE INCLUDE?
illustration shows a doubtful woman looking with a magnifying glass at a paper with lines, to give the idea of a detailed reading of a life insurance contract
The main coverage (protection provided for in the policy) of life insurance is the death of the person who contracted it. In addition, there are additional coverages that can be added, according to Susep.
This type of protection has broad coverage and can compensate for natural or accidental death, for example. Among the main coverages are:
- death from natural and/or accidental causes, which entitle the insured’s beneficiaries to compensation if he dies during the term of the insurance policy
- total permanent functional disability due to illness, in situations that make a person’s autonomy unfeasible because of a serious clinical condition
- total permanent disability due to illness, a consequence of a situation that does not allow rehabilitation and prevents the insured from working with what brought more income to their lives
- serious illnesses, if the insured is diagnosed with cancer, acute myocardial infarction, cerebrovascular accident (CVA), among others.
In addition, some coverage and assistance can be added to an insurance contract, such as funeral assistance, payment of daily allowances for hospitalization or medical treatment that makes it impossible to work, telemedicine, discounts on consultations, exams and medication, among others.
On the other hand, there are situations that are not covered by this type of insurance. These are called Excluded Risks. Susep informs that the main risks that do not give the right to compensation in these plans are:
- pre-existing diseases not informed at the time of contracting the insurance
- unlawful acts such as attempted fraud
- repetitive strain injuries
- food poisoning or drug poisoning, except for drugs that have been prescribed by healthcare professionals.
It is essential to observe the coverage of the contracted insurance to avoid surprises. Remember that the greater the number of protections, the more expensive the amount to be paid monthly for the insurance can be.
REASONS TO HAVE LIFE INSURANCE
photo shows two elderly people, one of whom has her hands on the other’s chest in a hug from behind. The photo highlights the hands to give a feeling of protection.
One of the main reasons for taking out life insurance is to allow family members to be supported at a time that, in itself, is already difficult, such as the death of someone. If this happens for a reason specified in the policy, the family will be compensated.
This support brings financial protection that is important to cover expenses related to the loss of someone, such as funeral expenses. Compensation also helps to maintain the standard of living of a family that has lost its financial supporters.
Finally, the money obtained from the compensation can be used to provide better conditions for the children or for the payment of debts. After all, the impact of a person’s death is great and can be felt for years, including financially.
With life insurance, policyholders are protected in the event of any situation provided for in the policy. With this, if any event covered by the insurance happens, those who contracted the protection and their beneficiaries will be able to better deal with adversities, without harming the budget.
Once you understand what life insurance is, it’s time to know how to get yours and, in this way, protect the people you love in case something happens.