PERSONALIZED LIFE INSURANCE: WHY MIGHT IT BE THE BEST OPTION?

If you are the type of person who is prepared for possible eventualities, you have certainly heard about personalized life insurance . However, not everyone knows exactly what it is, much less what the benefits are.

There are still those who want to stay away from this conversation! This is because there is a false impression that it will attract bad things. So, the time has come to demystify the subject and clarify more about this type of insurance.

It is worth mentioning that developments in the market have developed life insurance. Increasingly, companies realize the need to personalize services according to the type of consumer. And, with insurance companies, this was no different!

1. What is personalized life insurance?

I wish a peaceful life without unexpected events was guaranteed, right? However, we cannot guarantee this, especially when it comes to health. In the last year, we have seen several lives lost to a sudden pandemic, haven’t we?

This reinforced that human beings have no control over various situations. However, it also showed that through planning, impacts can be minimized. This is more or less where life insurance operates.

Although it does not protect against health problems in itself, it offers the security that loved ones will have support in case of eventualities. It is worth emphasizing, from now on, that life insurance is not only used in the event of death.

It is increasingly being implemented in other aspects of life. In women’s health, for example, it can act in the area of ​​breast cancer. In other cases, it may involve domestic problems that compromise health.

Faced with such a variety, it was realized that the best thing to do would be personalized life insurance. Thus, its coverage will cover exactly what the insured person needs, without subjecting them to a high-cost service that goes beyond what is necessary.

2. How does it work?

You must have noticed that personalization makes everything a little more personal, right? In general, every time we personalize a service, we can shape it in the way we like most.

In the case of life insurance, in addition to being designed to please, it is designed in a way that best suits the insured person. This makes the service escape that rigid mold, in which people were forced to hire something that would not be so compatible with their reality.

Therefore, personalized life insurance is a trend seen favorably by society. From the moment you remove from coverage what the insured person does not need, there is also an impact on the final value.

In this case, the cost of the service decreases, while still providing the best possible solution for exactly what is needed. Another aspect that is the subject of discussion when it comes to value is how to charge for the service.

There are basically 2 types of plans on the market. In one of them, the insured pays a certain amount per month, according to what the plan covers. The other will be paid according to the use of services, which may or may not have a basal rate.

3. Who should I recommend life insurance to?

From the moment it is possible to adjust life insurance to personal needs, it starts to cover a greater number of people. Thus, from the youngest to the oldest, the tendency is for them to benefit from insurance.

It is important to remember the unpredictability of life situations. Again, we have the impacts of coronavirus as an example. We then saw how society adopted life insurance during a pandemic .

In general, a person may often believe that, at that moment, no health problems will affect them or their family. Therefore, life insurance is designed not only for current needs, but also for future ones.

Therefore, whether due to unforeseen circumstances or due to advances in care over the years, needs tend to change. Here again comes the great benefit of customization: adjusting coverage as needed.

In short, personalized life insurance is suitable for everyone, assuming that it will adapt to each person’s needs.

4. What are the benefits?

From what has been said so far, it is now possible to indicate some benefits of personalized life insurance. To make everything clearer, we’ve listed the main ones below, check it out!

4.1. Freedom

The first highlight is the freedom that the insured has to shape the coverage. Let’s not go into the point of demands yet, but rather reinforce that personalization runs away from inflexible plans.

This allows adjustments to be made and, for now, we will highlight those that refer to price and validity period. Therefore, the insured person does not need to take out a very expensive plan that offers coverage well beyond what they need.

Furthermore, you don’t need to commit to something that lasts longer than it requires. With the diversity of plans, it is possible for the contract to be made for a specific period of time or even readapted as things go along.

4.2. Hiring according to needs

Now, let’s get back to the big question: hiring according to what you need. Anyone who has ever contracted a service sold as a package knows that one benefit or another could always be included beyond what is necessary.

However, even if the person didn’t need it, the maintenance costs would be included in the package. This is why personalization offers so many advantages in practice. First, it guarantees the insured person coverage for what they need.

In addition, the insured pays a fair price according to demand. So, there is no feeling of paying extra for something that will have no use. It is also worth emphasizing that the policy can only cover the requested moment, without going beyond the chosen time.

4.3. Product flexibility

To recap, personalization addresses different needs for different people. From there, it is possible to understand that the care that one person requires is not always the same as that of others.

In fact, everything is very variable, whether due to age, sex, or the diseases involved . The needs of a 20-year-old are not the same as those of a 50-year-old. However, at some point this young person will get older and his demands will change.

Therefore, the flexibility of the product is a great advantage for everyone. It will, in fact, allow a personalized approach for each person’s profile.

4.4. Discount system

Finally, it is worth reinforcing the financial benefit over personalization. You already know that contracting extra services, often without real need, ends up being more expensive for the insured.

Therefore, good value for money is guaranteed from the moment you only spend on what will be useful . Furthermore, the insured can evaluate the best plan coverage, from basic to complete for what they need.

It is worth highlighting that this demystifies the false impression that insurance is something expensive and inaccessible. Once personalization contributes to cost-benefit, more people tend to become better informed about the service and even hire it.

5. How to customize life insurance?

Now that you know the benefits of personalized life insurance, the time has come to close a contract with an insurance company. Therefore, we have separated some points that deserve attention!

5.1. Understand your needs

First of all, reflect for a moment: what are your needs? Well, several factors interfere with this, whether biological or not. Sex, age, chronic illnesses, ongoing medications… all of this must be considered.

It is also necessary to evaluate other aspects. What are your lifestyle habits? Do you practice physical activities? Are you a smoker or do you drink alcohol? And what about work, what level of exposure to risk?

All of this reinforces that each person has a different profile from each other. Understanding the specificities will help the insured person negotiate with the insurer the best coverage.

5.2. Evaluate the best coverage

Now, the choice! We saw above that several aspects will be considered to direct coverage. However, it is worth defining its scope.

Generally, insurance companies offer the most basic to the most complete plans. From the moment they are shaped according to what the person needs, they can assess what level of care they will want.

It is worth remembering that not everything is immutable, quite the opposite! The contractor can easily adjust or align coverage over time and changing demands.

5.3. Consider payment methods

Finally, the financial aspect cannot be left aside. Each insurer will present specific payment methods and, of course, the choice is up to the insured.

When the matter involves costs, it is interesting for the contractor to evaluate with the insurance company how the claims would be released. Often times, it’s when things get tight that problems appear, and the way to avoid this is to keep everything properly aligned in the contract.

6- How to choose the ideal option?

As important as knowing how to set up personalized life insurance is knowing how to find the best insurance company for it. Of course, we couldn’t help but give you the best tips! See below!

6.1. Bet on credibility

You don’t want to trust your life in the hands of just any company, right? When it comes to health, we must make the best choices for ourselves and our family.

Then, research the history of the insurance companies considered. Evaluate its credibility in the market and, if possible, contact an insured person to see what their feedback is on the service.

6.2. Prioritize innovators

Complementing the previous topic, the insurance company with the greatest credibility will not always be the oldest one. In fact, when faced with trends, it is necessary to look for those with an innovative vision.

So, ask yourself straight away: is it possible to purchase personalized life insurance? If the answer is negative, disregard it and move on to the next one. Taking one step at a time you will find the best option!

6.3. Consider the services offered

Here, we will assume that the insurer offers the option of personalized life insurance. From there, the types of coverage must be evaluated, after all, you will choose what meets your needs.

If it falls short or goes further, it’s worth reviewing whether it’s the best option, after all, you want something specific to your needs. In addition to the coverage itself, you cannot leave the financial aspect aside.

So, ask yourself how the charge is made and how much the life insurance amount received would be in the event of any complications. This way, it is possible to weigh the cost-benefit of that option.

6.4. Don’t make hasty decisions

Calm down, don’t make impulsive decisions! Have you decided which is the best insurance company? Then, mentally review important aspects of that policy.

Don’t forget that the basic principle of customization is that it perfectly fits what you need. If the insurer suggests additional demands, carefully evaluate whether you want to use these demands.

Furthermore, find out what the release of claim amounts is like in practice. Although everything is properly documented, any delay, in practice, can be harmful.