Life insurance, differently from what many think, is not only intended to indemnify the family in cases of death of the contractor. Over time, the product has become more sophisticated, adding different covers to be used in life and which ensure greater tranquility and comfort in situations such as illnesses, personal accidents, or loss of income. With this, the product becomes interesting not only for married people or children but also for young people and professionals, subject to a series of unforeseen events. The choice of the best product depends on the knowledge of the real needs of the contractor. Knowing a little about “insurers”, those terms that are in the contract and often confuse also helps.
“For this reason, the need for brokers to act as consultants, find the best alternative for that client and provide all the support for him to make a secure contract,” explains Dayana. “Life insurance is the best way to protect the family and the person because unforeseen events occur, compromising work capacity and income”, he adds.
Life insurance covers, by definition, three social risks: death, disability, whether temporary, permanent, partial, or even total, and survival. The latter is linked to the need for resources to cover the loss of work capacity as a result of aging. Everyone is subject to these risks, to a greater or lesser extent depending on the occupation, age, and existence or concern for dependents.
There are several coverages in addition to the indemnity for death, such as Serious Diseases which guarantees resources in case of health problems such as cancer, stroke, and infarction, Temporary or Permanent Disability, Hospitalization (IHL) among others. In the specific case of the death indemnity, there are products that allow the choice of how the family will receive the resource: single capital or as monthly income.
Terms used in life insurance contracts may seem difficult, but they are not
The policy, for example, is nothing more than the closed document between the parties that defines the rights and duties of the insured and the insurer. It must contain the general, particular and special conditions of the contracts, in addition to setting coverages. Insured capital, on the other hand, is the financial importance of that contract, that is, the amount to be indemnified in case of some of the events provided for in the policy. These events, such as death, personal accident, illness, etc. they are called claims.
Another term that can be confusing is the deductible, better known in cases of insurance for theft or accidents such as vehicles. The deductible is also applicable for coverages such as hospital rates (IHL) or temporary disability rates (DIT). In this case, the deductible is charged in days. For example, in the DIT, the payment starts to take effect after the first 10 days of absence or, in the case of the hospital stay, it is paid only from the third day of hospitalization, but retroactively.
Finally, another jargon of the sector is the premium, which is not received but paid. It is nothing more than the amount the insured person pays to be entitled to that coverage.