LIFE INSURANCE: WHO IS ENTITLED AND HOW TO APPLY?
When taking out life insurance, who is entitled to receive compensation must be explicitly stated in the policy. It can be anyone the contracting party declares as such, although the beneficiaries are usually the spouse and children.
However, the contractor must take some measures and, to do so, it is important to know how life insurance works and how to go about receiving compensation. This post will make the subject clearer for you.
Continue reading and discover everything you need to enjoy the peace of mind that only life insurance can provide.
How does life insurance work?
The life insurance contract , which includes the rights and responsibilities of the parties (insurer and insured), is consolidated in the policy. It contains the main information regarding the insured, beneficiaries, coverage, premium and compensation amounts, among others.
When taking out life insurance, the insured person chooses the coverage that is best suited to their reality, among the various options available. Likewise, he defines the amounts of compensation that he considers will be sufficient for him.
At the same time, the insurer informs the value of the premium for the defined coverage and the value of the compensation in the event of a predicted loss. While the company undertakes to make the compensation, the insured undertakes to pay the premium monthly.
In general, life insurance will also compensate for disability within the scope provided for in the policy. The main coverages can be related to:
- death (natural or accidental);
- permanent disability (total or partial);
- functional or working disability due to illness;
- medical, hospital and dental expenses;
- daily allowances required due to temporary incapacity;
- daily hospital stays;
- serious diseases.
These are the situations that the insurance company compensates for. However, if there is death or disability due to a cause other than those covered by the policy, there will be no compensation.
Therefore, if there is an accident involving any contractual provision, the contractor must contact the insurance company. In this sense, it is important that family members are informed about the existence of insurance, current coverage and ways to contact the insurance company.
How is compensation paid for the death of the insured?
If an accident foreseen in the policy occurs and leads to the death of the insured, the insurer must be informed with the communication of this accident. Generally, the person who does this is a close relative, almost always the beneficiary, who can be more than one person, as long as it is indicated in the policy.
The person(s) named as the insurance beneficiary(ies) in the policy will receive the relevant compensation within a few days of the insured’s death. However, some initial aspects must be taken care of, as we will show below.
Required documentation
Before formally contacting the insurer, it is necessary to provide some documents for immediate information, while others may be requested by the insurer later. It is common to indicate a form (claim of claim) to be filled out with the insured’s data and the reasons for the action, in addition to documents such as:
- police report, when relevant;
- death certificate, if applicable;
- marriage and birth certificates, depending on the beneficiary;
- RG, CPF and proof of residence of the beneficiaries.
It is advisable to contact the customer service center in advance to check the initially necessary documentation. Most insurance company websites, for example, have this information.
Accepted causes of death
The causes of death accepted for life insurance compensation purposes are those arising from natural death or due to a fatal accident. Furthermore, due to the Civil Code, if there is a death due to suicide committed more than 2 years after taking out the insurance, it is necessary to have compensation.
Ways to contact the insurance company
To contact the insurer, the person must contact the respective call center. This activation can be done via telephone or in person. Therefore, in many cases, also via the insurance company’s website, on an exclusive page for this purpose.
How important is life insurance and who is entitled to it?
Any person who values the peace of mind of knowing that in the event of a sudden absence, their loved ones will be financially supported, are eligible to purchase life insurance. But, in fact, the importance of this insurance goes much further.
Consider, for example, family financial planning and the expectation of ensuring that the standard of living is not abruptly altered if there is an unexpected departure. In this case, life insurance compensation avoids the need to dispose of family assets for daily survival.
Still from a financial point of view, the cost-benefit ratio of this investment is very favorable to the insured. Therefore, just consider the amount applied monthly and the amount of compensation that may be necessary at any time.
Take into account that life insurance compensation is not limited to the death of the insured. The disability condition that prevents the continuity of your productive activities is also a trigger for insurance.
Likewise, the occurrence of a serious illness that affects the insured. In fact, life insurance can be properly customized to meet the characteristics and needs of the insured by making the necessary provisions in the policy.
How to choose the most suitable insurance?
To get the best insurance for you and your family, you need to take some initiatives to obtain the most suitable option. Follow these essential tips for this purpose:
- know your personal and family needs in detail;
- consider the necessary support for your spouse if it is impossible for you to continue providing support;
- evaluate the basic and additional coverage available in light of your demands;
- remember the need for funeral assistance ;
- count on an experienced and trustworthy insurance company, well established in the market;
- take into account the inclusive differences in the insurance offered, especially in the case of chronic illnesses .
As you can see, the importance of life insurance, who is entitled to compensation and how to contact the insurance company are essential information that must be shared with family members. With this, it is possible to make the procedures even more agile when it comes to making use of insurance.