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What is a life insurance claim and how does it work

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What is a life insurance claim and how does it work

A word that always comes up when we talk about insurance is “sinister”. But, after all, do you know what is the life insurance claim?

Knowing the main terms used in this universe is essential for you to make the best decisions. Being able to have the tranquility offered by life insurance is priceless, but your choice must be based.

Read on and learn more about a life insurance claim and how it works!

What is a life insurance claim?

When life insurance is taken out, the policy issued details the coverages that are part of the plan. The occurrence of the event that this policy provides for is known, in insurance jargon, as an accident.

Thus, the claim can be conceptualized as the occurrence of an event whose coverage was contracted in the insurance. Thus, if an accident death victim has a policy with that scope, the claim will be configured.

The same is true for other types of life insurance coverage, some of which can even be used in life. Here are some cases:

  • death from natural causes;
  • partial disability due to accident;
  • total disability due to an accident;
  • permanent disability due to increased accident;
  • serious illness ;
  • daily due to temporary disability;
  • medical, hospital, and dental expenses;
  • funeral assistance.

In this general way, life insurance has possible claims for death, an accident with disability or illness. The occurrence of these cases leads to situations for which the policy of the insured person guarantees the payment of the indemnity.

How does the life insurance claim work?

The procedure for calling the insurer in the event of a claim is simple. After the initial contact with the company, you must formalize the communication on a form and submit some copies of documents.

The first measure, therefore, is to report the claim to the insurer by telephone. With this, the company will be able to give the necessary guidelines for the next steps to be followed.

The claim form that the insurer submits next must have its fields fully filled in carefully, avoiding subsequent returns due to errors or missing data.

Along with the complete form, documents such as:

  • certified copy of the death certificate (if applicable);
  • simple copy of the police report (if applicable);
  • simple copy of the insured person’s RG;
  • simple copy of the insured person’s CPF;
  • simple copy of the marriage certificate (if the insured is married).

It is important to note that the copy of the death certificate is the only document that needs to be notarized. The rest can be ordinary copies.

Also, it is worth noting that, in the case of collective insurance, there may be some differences in the process, which must be investigated directly with the contracted company.

After carrying out these procedures, the rest is left to the insurer. It will offer the assistance items provided for in the insurance policy without obstacles or bureaucratic difficulties. The respective indemnity is paid in a few days, also without other requirements.

Is it possible to contract several life insurance policies at the same time

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several life insurance policies at the same time

Each insurer will pay the indemnity according to the insured capital contracted.

You can buy as many life insurances as you want, at the same time, from different insurers or at the same. There is no limit on the payment of compensation. Each insurer will pay the indemnity according to the contracted insured capital.

However, the insurer may limit the maximum values ​​for buying, respecting its technical acceptance limit. When you sign the insurance proposal or make changes to your policy in relation to the indemnity amount, the insurer may ask you to inform if you have other life insurance. However, the insurer will not be able to compel you to report the purchase of other life insurance if they are taken out after your policy starts.

The form of payment of insurance premiums will be at the discretion of the insured, according to their convenience and defined at the time of contracting. It may be monthly, bimonthly, quarterly, quarterly, half-yearly, or annually.

Life insurance on a pay-as-you-go basis is not an investment, so it does not allow you to redeem or return the amounts you paid. By taking out this insurance, you will be looking for compensation for a harmful event in your life, in the event of a claim (death, disability, illness, loss of income, inability to exercise the activity, etc.). If there is a claim, the insurer will pay the indemnity corresponding to the insured capital, according to the coverage contract. In general, insurance plans follow the pay-as-you-go financial regime, which does not allow redemption or refund of premiums paid, either to the insured or to their dependents.

When you receive the individual insurance policy, check that the coverage and the amounts of the insured capital are the ones that you contracted so that there are no doubts when paying the indemnity.

Do not pay insurance in cash or with bearer checks or provide your details or make payments to people who come to you in person or by phone, on the grounds that the information is necessary to release the claim. Insurers don’t do that. It is advisable to look for a qualified and trusted broker to mediate the contracting of the insurance, which should be the same one who will take care of the settlement of the claim.

Life insurance coverage ensures peace of mind for coping with serious illnesses

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Life insurance

Cash indemnity allows the insured to use the funds for additional therapies or to compose income.

No one is free from unforeseen circumstances, regardless of age, sex, or economic status. However, there are behaviors that increase the likelihood that a person will be affected by a serious illness or a traffic accident, which compromises the ability to work.

The number of people concerned about health is increasing, but statistics still point a long way towards a healthier life. Various illnesses impose temporary or permanent leave from work, just as traffic accidents leave thousands of young people, in particular, with permanent sequelae.

In this scenario, changing the lifestyle and, in parallel, adopting protection instruments for unforeseen events is essential. There are insurances that include this type of coverage.

Data from the Ministry of Health indicate that, in the USA, an average of 300 thousand people suffer acute myocardial infarction per year. New cases of cancer in 2018, according to the National Cancer Institute, surpassed 500 thousand. Even if you have a health plan, you may need an additional resource for treatment because not everything is covered.

The Serious Diseases insurance, for example, indemnifies the insured person in cash who can use the resources for additional therapies or compose the income.

Serious Diseases insurance indemnifies policyholders for various types of cancer, Alzheimer’s, stroke, and heart attack. The prevalence of these diseases, whether due to an aging population or inadequate habits, has been growing. “Cancer is a multifactorial disease, with an important weight for genetics and family history, but it is also associated with unhealthy lifestyle habits”, comments Ricardo. Obesity, for example, by raising the level of hormones in the body, increases the risks of breast and endometrial cancer.

Smoking, in addition to being associated with lung cancer, also causes neoplasms in the bladder and digestive tract. “The fact is that poor diet, physical inactivity and stress expose the person to various diseases, such as cancer, cardiovascular diseases, and diabetes”, adds Caponero.

Accidents leave thousands of young people with sequelae.

Common sense associates the need for life insurance for older people and dependents, but the product is also important for young people. In addition to diseases such as cancer and cardiovascular diseases also affecting this population, it is the most affected by traffic accidents with temporary or permanent sequelae.

Last year, according to data from the DPVAT, 224 thousand people were left with some kind of permanent disability due to traffic accidents. The most affected age group is 18 to 34 years. There is a wide range of life insurance options, with simplified coverage to suit the younger population. And with the advantage of lower prices, due to the age of the insured.

For accidents or temporary illnesses, life insurance with Temporary Disability Daily (DIT) coverage guarantees the payment of an income in the form of a daily rate while away from work, within the contracted limits. If the insured person dies, the product indemnifies the beneficiaries, who do not need to be children or spouses but can be a father, mother, or anyone mentioned in the policy.

Serious illness insurance: Why you should buy one as an extra protection measure?

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Serious illness insurance

Unforeseen events happen at any time. Because of this, it is important to have serious illness insurance to be financially prepared.

Unforeseen events can happen to anyone, at any time – especially concerning health problems. Because of this, it is important to have serious illness insurance to be financially prepared in case you face any of them.

This modality has even won more and more fans.

What does serious illness insurance cover?

This coverage is not a basic item in insurance, but additional protection.

To be entitled to benefit from the indemnity, you must be diagnosed with a serious illness after the grace period of the plan.

See below which situations are part of the policy.

Cancer

Several different types of cancer are covered by this insurance modality, such as leukemia and malignant diseases in the lymphatic system.

On the other hand, there are some exceptions in non-invasive diagnoses, among them tumors described as premalignant, prostate cancer in primary stages, malignant melanoma with a low degree of tissue invasion, and malignant tumor in the presence of any human immunodeficiency virus.

Stroke

Also known as a stroke, this is another type of disease covered by disease insurance.

It is worth mentioning, however, that the neurological symptoms cannot have been caused by migraines or the hemorrhage caused by accidents, brain tumors, obstruction of the ophthalmic artery, or brain surgery.

Acute myocardial infarction

If you suffer a heart attack, you will be entitled to receive the insurance claim.

Only in the diagnoses of angina pectoris (caused by the low supply of oxygen and nutrients to the muscle), decubitus angina (usually considered as a heart failure process), and other acute coronary syndromes that this benefit is not granted.

Bypass surgery

This is a procedure used in bariatric surgery, in which gastric stapling is performed to restrict food intake.

It is covered by insurance, as long as it is not caused by surgery with closed-trunk surgical catheters, angioplasty, and other intra-arterial procedures or non-surgical techniques.

Other diseases

The insurance also guarantees the payment of compensation in other serious cases, such as:

  • Alzheimer’s disease ;
  • limb paralysis;
  • organ transplant (heart, marrow, liver, kidneys, pancreas or lung);
  • partial or temporary disability;
  • special anticipation for incurable disease;
  • personal accidents and medical, hospital, and dental expenses.

Why you should buy serious illness insurance?

This is the first type of insurance you can count on to help pay for treatments, transportation, and medications that not even health plans cover.

It is interesting because it has a low monthly fee and guarantees financial protection in several complicated situations.

Why worry about unforeseen events if you can prevent them? Take a good look at the coverage offered by serious illness insurance and choose your policy.

How does life insurance work? Check out 5 common questions

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How does life insurance work

Check out some tips for those who want to buy life insurance.

How does life insurance work? How much? What guarantees does it offer? Is it the same as personal accident insurance? These and other questions are very common for those who want to buy this type of service. Check it out below.

1. What is life insurance and how does it work?

Life insurance is a contract made with an insurer to guarantee your financial security, as well as that of your dependents, at unexpected times.

You can choose the coverages that meet your demands, and also indicate who will be your beneficiaries – it can be more than one person.

But, after all, what is the amount paid to have these services available? The cost of life insurance may vary according to the coverage selected, depending on your goals and aspects such as age group, profession, sex, and habits of the insured.

Once the contract is made, the insurer is responsible for paying a previously established amount (indemnity) in case any of the accidents contracted in the policy happen.

In these situations, you or your beneficiary must contact the insurer and report what happened. The company will request the submission of the necessary documentation, which must go through an analysis and approval to then release the amount in question.

We remind you that it is very important to notify your loved ones where insurance documents, such as the policy, will be kept to facilitate the process.

2. What is the difference between life insurance and personal accident insurance?

Contrary to what many people think, life insurance is not the same as personal accident insurance. While the former gives the right to compensation in the case of natural death or illness, the latter, although it is more affordable, covers only cases of death or disability caused by accidents.

Some people see life insurance as something they will pay dearly for, but they will never be able to enjoy it, however, these are erroneous thoughts. This is because it can be used in life in specific cases, which we will discuss later.

What’s more, the cost can be much less than we usually pay to protect our car or apartment, for example – and maintaining the family’s quality of life should be a priority.

3. Why you should take out life insurance?

Many people do not include life insurance in their planning, as they do not find themselves facing any fatality. However, unforeseen events happen all the time and, therefore, prevention is always the best solution.

Buying life insurance aims to promote financial protection precisely in the event of some misfortune happening. Therefore, if you have a good quality of life and want to cherish the continuity of this standard, you should consider this option.

Therefore, taking out life insurance shows concern and appreciation for the family, as it guarantees the necessary resources for dependents in times of difficulty. Also, you can enjoy the benefits of life depending on the situation.

4. What are the guarantees for life insurance?

Life insurance guarantees vary according to the contracted plan. However, policies cover accidental or natural death and, in some cases, ensure protection for total or partial permanent disability due to an accident or serious illness.

In detail, when contracting insurance, the contractor and his dependents can have protection against:

  • death;
  • total or partial permanent disability by accident (IPA);
  • total permanent disability by accident (IPTA);
  • increased permanent disability due to accident (IPAM);
  • total permanent functional disability due to disease (IFPD);
  • total permanent disability due to illness (ILPD);
  • medical, hospital, and dental expenses (DMHO);
  • temporary disability benefits (DIT);
  • daily rates for hospitalization (IHL);
  • serious diseases (DG).

In cases of serious illness, a health plan covers only consultations, basic exams, and hospitalization. He does not pay for the patient’s transportation, special care, and necessary daily remedies.

These values ​​are high and can compromise the family’s financial situation. Thus, it is essential to have life insurance to ensure greater support in relation to these costs.

When buying this service, you receive financial aid for expenses in diagnosing Alzheimer’s, Stroke, cancer, acute myocardial infarction, chronic renal failure, and loss of hearing, speech, or vision.

Other coverages are for limb paralysis, bypass surgery, and heart, liver, marrow, pancreas, lung, or kidney transplants. In this way, moments of family insecurity are taken more easily.

One of the benefits for the insured is the additional indemnity in need of ICU admission. The daily rates are paid for clinical or surgical treatments caused by illness or accident, and which cannot be done at home, office, or clinic. With that, you can do the proper treatment without compromising your income.

5. How to take out life insurance?

To buy life insurance in line with your goals and needs, you must first look for a company that specializes in insurance that offers quality plans and affordable prices.

Having chosen the insurance company, one should understand the coverage available and assess which one is best suited to your family. Next, calculate the insured capital, and, before signing the contract, evaluate factors such as:

lack of the policy;
geographical coverage of coverage;
excluded risks;
The maximum amount of insured capital;
Prize amount;
product availability under specific policies.

Take advantage and do a simulation to set up the ideal plan thinking about your financial security and that of your dependents.

The difference between life insurance and pension

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The difference between life insurance and pension

Some people may be confused when choosing between life insurance or a private pension plan.

The pension plan aims to be long-term savings, that is, it is part of your retirement planning. Social security is a way for you to save today to have a reserve when you stop working.

Life insurance is an immediate protection. With the policy in hand, whenever an event is covered by the policy occurs, the insured or the beneficiary receives what was agreed upon when contracting the insurance.

Both protections are important for a successful financial strategy.

Private pension

Private Pension was born to complement Social Security and compose the retirement planning of clients.

Usually, banks and independent insurers offer this type of product. In private pension plans, the customer chooses the amount of the contribution and the frequency with which it will be made. The amount to be received will be based on the contribution that was made and the results of the financial investments linked to the plan.

Life insurance

Life insurance is considered a protection against unforeseen circumstances. So, contrary to what many people imagine, it is a product suitable for people of all ages. If you have someone you would like to support in your absence, then you should hire this service.

After all, this is the goal of life insurance: to guarantee the financial security of your dependents for a certain period of time if you are unable to do so and cannot be confused with a private pension plan.

Do you know the life insurance market?

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Do you know the life insurance market?

The life insurance market has existed in the USA since the empire, but there are still many doubts about its importance and the benefits it contemplates. The most common of these is to believe that life insurance only serves to financially protect the family in the event of the death of the insured. Do you know what the others are?

See below for 5 useful information about these products that still confuse the population.

1. Product is not used only in case of death

When it comes to life insurance, we automatically think of the cases in which the insured person dies. However, there are other options for broader protections against countless life hazards.

Imagine, for example, that a patient has been diagnosed with cancer. In addition to the health risk, the disease can compromise the insured’s and his family’s income. Therefore, there are several products available on the market that include protection in case of serious illnesses.

There are other coverages, such as in the case of medical procedures, hospitalization, accidental disability, and anticipation of receipts in case of terminal illnesses. Some products are characterized by the constitution of a redemption value after a certain period of effectiveness of the policy. For these types of products, it is worth noting that the formation of redemption value is not to be confused with a private pension.

Life insurance can still be customized for different health profiles and lifestyles, such as different risk analysis for people in risk professions or hobbies. Therefore, it is important to know all the options and be sure about the ones that best suit your profile before signing the contract.

2. Life insurance does not equate to private pension or retirement

In the last few years, the life insurance category has become popular in which the insured can, at the end of the agreed period, redeem part of the amount constituted over the years even if the claim does not occur.

Contrary to what many people imagine, this redeemable life insurance should not be confused with a private pension, retirement, or any other type of investment. This is because the main objective of life insurance is the financial protection of the insured and the family in the event of a risk provided for in the insurance contract, different from the private pension plan, for example, in which the purpose is to build the necessary financial reserve to guarantee the quality of life during the retirement years.

3. Importance for young people and singles

It is common to think that life insurance is only useful for older people. But the reality is not so, since young people and singles can use life insurance in their own financial planning and that of their family. The numbers confirm that this segment is, in fact, growing.

Unforeseen events can occur at any time in our lives. Although less likely to develop serious illnesses or trigger a claim, it is important that people in this age group are also protected. Young people normally fall into a lower risk category, which reduces the premiums paid. But the more that decision is postponed, the greater the chance of any situation occurring that places the insured potential in a higher risk profile.

Likewise, singles and no dependents who plan to start a family in the future should also think about it and, if applicable, hire the product while prices are more attractive.

4. Affordable costs for different customer profiles

Asked why they did not take out life insurance, many would say it is because there are not enough financial resources to do so. What some people don’t know is that there are customized insurance options for each customer profile.

As with car insurance, a prior risk analysis is carried out, and the price can fluctuate according to numerous variables, such as age, compensation amount, healthy habits, family medical history, among others.

5. Business plan may not be enough

Many companies offer a corporate life insurance plan, but these products do not always fully meet customers’ needs. It is important to calculate whether, in the event of an event, the contracted plan will in fact offer the desired coverage. It is also relevant to read the terms of the contract carefully to see if, in the event of dismissal or job change, there will still be insurance coverage.

Since these products involve many features, including a number of optional benefits, it can be difficult to fit your needs into a particular group. To better meet the demands, it is possible that personalized life insurance is the most appropriate option.

Life insurance, private pension and investments: do not confuse these products

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Life insurance, private pension and investments

They are important in financial planning, and their differences make them complementary

The Americans have increasingly understood the different products aimed at financial planning and its purposes, but there is still some confusion, for example, in the case of individual life insurance and private pension. Both are often seen as products that compete for the same space in financial planning, but in reality, they should be seen as complementary tools.

Both life insurance and private pension plans look to the long term, however, the similarities end there. Each has specific functions and benefits. The pension products aim at retirement, allow the choice between progressive or regressive tax regimes, and the reduction of the tax base by up to 12% – when the Income Tax (IR) is declared in full and contributions are made in the PGBL.

In addition, they use specially constituted investment funds, which do not incur quota-sharing, a semiannual collection of income tax expected in most conventional investment funds and which reduces profitability in the long run.

Individual life insurance, even the so-called redeemable ones, aims to protect the financial condition of the beneficiaries in the event of the insured’s early and unexpected absence, or the financial condition of the client himself, in situations that can transform his life, such as disability accident, serious illness, and even hospital admissions. Therefore, they are not and should not be confused with investment or social security.

Because of these characteristics, many experts recommend that people consider life insurance, pension plans, and investments as complementary products in their financial planning. Investment funds, therefore, are aimed at accumulating equity; private pension aims at a more comfortable retirement; Life insurance, in turn, is essential for succession purposes or to help the insured himself and his family to deal with possible problems along the way, such as early absences, serious illnesses, hospitalizations, or disability.

The amount accumulated in the funds of the pension products, through the contributions made and the profitability earned, will define retirement income, with no guarantee of value.

The indemnity of life insurance does not depend on the amount of installments paid or profitability, since, immediately after the policy is issued, protection considers the full amount contracted.

For example, even if the customer has only paid a portion of the insurance contract when a claim occurs, the beneficiary may receive the full amount contracted. That is, the product does not depend on accumulation and, after the first payment, the insured is already covered.

How does redeemable insurance work?

The redeemable insurance has a specific characteristic: it allows the insured to redeem an amount when necessary. However, when requesting the receipt of part of this amount, the protection amount is reduced, and, in cases where the entire available amount is accessed, the policy is automatically canceled.

This particularity of redeemable life insurance aims to give more flexibility to the insured, and should not be confused with the return of installments paid, profitability, or financial gains.

When hiring life insurance, it is important to provide all the health information requested in a complete and correct manner, in addition to carefully reading the general, special conditions, and terms of the policy to know the situations covered.

insurance or pension

A benefit for succession planning found in pension plans and life insurance is the fact that the death indemnity is exempt from income tax and the possibility to choose beneficiaries other than the legal heirs.

However, an exclusive benefit of life insurance is that it is not considered an inheritance; therefore, it is not subject to the Tax on Transmission Cause Mortis and Donation, called by many an inheritance tax. As the inventory process involves costs for the heirs, and, in many cases, can consume 15% to 20% of the total amount involved, it is normal to take out life insurance to cover these expenses and ensure the financial stability of the family during its resolution.

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