One way to advance this transformation is to break some myths: not all life insurance is the same! The various possibilities of coverage, for example, reflect this diversification.
Today the market offers protection for different situations in life, designed for specific needs and situations. To learn more about these life insurance coverages, follow this post to the end!
How important is life insurance?
How can we prepare ourselves to face difficult situations that directly affect our financial balance? How can we guarantee protection and support to people who depend directly on us?
Reflections like these, when they are not part of our formal education, usually arise for two reasons:
1st. Special events such as the birth of a child or a marriage, that is, the emergence of people we love and want to preserve and depend on us;
2nd. Threats with a high probability of happening. It could be the development of a disease or an accident that makes it impossible to generate income; these are some of the situations in which we want to protect ourselves.
Life insurance can therefore provide financial protection for you or anyone else who depends on you, in difficult times or in your absence.
The possible situations are diverse and, therefore, the face time of life insurance coverage is also varied. Protection is not limited to death situations only.
To begin with, let’s make the concept of life insurance very clear.
What is the life insurance coverage?
Intuitively, the word coverage refers to protection. When it comes to life insurance coverage, we can follow this line of thinking and understand it as a guarantee against the risks specified in the contract between the insurer and the insured.
What is the life insurance coverage?
Choose the right life insurance coverage for you and your family!
As we mentioned earlier, there are several types of coverage present in life insurance. To make a decision, assess your needs so that your choice, in fact, is a reflection of your condition and future prospects.
Maybe your main goal is to ensure your children’s education until college, maybe it’s to keep the household bills for a period, or maybe you want to have more solid support in the case of a serious illness.
Whatever the case, there is life insurance coverage that is right for you.
death coverage
Death coverage is the most common. It can include natural or accidental death or both.
In the event of a claim, compensation is paid to the beneficiaries of the life insurance contract, which may be family members or anyone who depends on you as a financial provider.
It is very important to mention that life insurance is not considered an inheritance. Therefore, it does not depend on the inventory for the indemnity to be released. The amount redeemed is also not subject to Income Tax deduction.
These characteristics contribute so that the financial support needed in times of loss is quickly available and preserved.
Also, find out if life insurance coverage excludes any type of accidental death such as death from hurricanes or handling of chemical material.
Temporary disability allowance
This is a life insurance coverage that protects the insured in life; that is, he is the beneficiary himself. It is recommended for self-employed or self-employed professionals who cannot temporarily stay out of work, whether due to illness or accident, without their income suffering a drastic reduction.
A monthly amount is calculated for the indemnity from an estimated daily earning amount. In the contract, there will be a limited number of days stipulated to be paid.
Serious diseases
Severe illness coverage is an ancillary item, little known but extremely helpful. Anyone who has a family history of diseases such as cancer or Alzheimer’s knows how exhausting it is for the patient and his entire family. In addition to the emotional aspect, it also weighs the costs of treatment and medication.
Insurance compensation can help cover these expenses necessary after diagnosis so that the insured has adequate treatment and the family more tranquility and financial balance to overcome the challenges imposed by the disease.
Some of the diseases considered serious by insurers are Cancer, Acute Myocardial Infarction, Stroke, End-stage Renal Failure, Organ Transplantation, ByPass Surgery, Limb Paralysis, Blindness/Vision Loss, Deafness/Hearing Loss, Muteness/Loss of speech, and Multiple Sclerosis.
When hiring this life insurance coverage, it is very important that you question situations that exclude each illness. Coverages for these diseases are usually for well-defined and specific situations.
Permanent disability
Coverage for permanent disability is another protection option that can be used by the insured in life. It can occur by illness or accident and is characterized by the permanent loss of functions of a vital part of the body or limb of an individual, preventing him from working and obtaining sustenance for his survival. There are two types of coverage for this type:
- Total or Partial Permanent Disability due to Accident (IPA): it can occur by accident and is characterized by the loss, reduction, or permanent functional impotence, total or partial, of a limb or organ due to an accident that does not necessarily make it impossible for the insured to exercise their functions at work and earning sustenance for their survival;
- Special Indemnity for Disability due to Illness (IED): this is a permanent and total functional disability caused by illness, which causes the loss of independent existence of the insured;
What to do in the event of a life insurance claim?
In the event of a claim, the first step is to inform the insurer about what happened. For this, it is very important to leave the insurance information and the insurer’s contact channels available and organized.
Remember to inform beneficiaries or a family member about the existence of life insurance coverage. One of the most common problems in triggering insurance is the lack of information.
Some basic documents will also be required, and you should make them available and prepared to facilitate the claim release process.
Whenever we have the opportunity to know and understand more about a financial protection tool such as life insurance, we enrich our repertoire and gain more resources to reflect and research the best solution for our needs.
Everyone’s wish is for life to go on without serious unforeseen events or painful situations, but we know that we are all subject to eventualities and situations that are beyond our control. When these situations happen, it is also everyone’s wish to be prepared.
