Closing a life insurance contract is a sensible and responsible attitude, especially for those who have a family. After all, a sudden absence can be a very difficult experience.
However, difficulties can be reduced by providing the care offered by insurance protection. And, for everything to work out, it is important to know and evaluate the main aspects of the contract. With that in mind, we prepared this post with essential clarifications and tips.
Read on and learn what to evaluate when closing a life insurance contract.
Discover the main components involved
Life insurance is a contract between the insured and the insurer. The insurance broker is a facilitator that makes available to the interested party the insurance options offered by the market. To this end, the broker guides and seeks to provide subsidies, so that the interested party can choose what best suits the reality they want to protect.
The future insured must clear all his doubts with the broker and be very clear about what he intends to hire so that the guidance provided is specific to serve him. The beneficiary of the insurance is the person (it can be more than one) who will receive the indemnity, if the accident occurs, such as death or disability of the insured.
When it comes to life insurance, the most common is the indication of someone in the family, but it can be anyone. There are four technical terms specific to the insurance environment that must be well understood:
- claim: is the consummated risk, that is, the event (disability or death) for which protection was contracted;
- grace period: it is the period of time during which the insurer is not responsible for payment of indemnity;
- premium: is the amount paid by the insured to have insurance protection;
- deductible: it is the part that the insured must pay if the accident occurs (in the case of life insurance, there is no deductible).
The instrument of this contract is the insurance policy, in which the main contracted aspects are recorded. Thus, the specified coverage, the premium amount, the period of validity, the indemnity amount, and the beneficiary, among others, must be included.
Assess your needs
Taking out insurance is a preventive measure, with a view to protecting assets whose loss would be very significant for the person – all the more so when it comes to life insurance since protection is sought for the most valuable asset. In the case of life insurance, what must be evaluated in each of the aspects that can be measured, financially, in the event of an unexpected absence?
Thus, for example, one can think of immediate family support or a child’s schooling as needs that should be met. By evaluating these needs, it is possible to define parameters for contracting life insurance.
With this, the coverage, the indemnity values, and the value of the premium paid by the insured can be specified. In the case of life insurance, the most important aspect to be defined is the indication of the beneficiary. When more than one person is indicated, it is also necessary to inform the percentage of compensation that is due to each one.
Evaluate available assistance
Often, insurers offer assistance, along with contracted coverage. They are useful services when the need arises. Among the various assistance available by different insurers, the following can be mentioned:
- funeral assistance (an indemnity amount);
- child care (babysitter, transport, etc.);
- pharmaceutical assistance (discounts on medicines);
- pet assistance;
- personal fitness;
- electrician services;
- locksmith services;
- hydraulic plumber services.
Understand when compensation can be denied
So that there is no possibility of error or mistake that prevents the beneficiary from receiving compensation, in the event of a claim. Consider the situations outlined below.
Incorrect information in the quote
When requesting an insurance quote, a set of information — especially about the policyholder’s profile — is requested. This information must be reliable, or the insurer may refuse to pay the compensation due.
Legal infraction committed in the accident
If there is an accident and the insured is responsible, compensation may not be paid. A common example is the death of the insured by an accident caused by himself.
Delay in premium payment
The most commonly found form of insurance payment is the premium installment. However, there may be a delay in the payment of an installment and the incidence of the claim occurs in this default condition. When there is a delay in payment. The insured is uncovered, until the payment is made.
Choose a quality broker
Everything has been verified and studied in the best way, now it remains to rely on the advice of a good insurance broker. Your satisfaction with the insurance contracted will largely be the result of your choice of brokerage. So, not to make a mistake, there are some tips that can be right when choosing. See below.
Discover the broker’s differentials
This is not a difficult task. Discover the broker’s experience and how long it has been in the market. Take into account what it offers and verify that the information is correct.
Search customer opinion
One of the best references you can get is from the broker’s client. See the opinion of users on specialized sites.
Confirm the broker’s accreditation with SUSEP
This is an essential requirement that should address. The Private Insurance Superintendence (SUSEP) has a record of all insurance brokers authorized to operate. A quick consultation already allows for knowing the suitability of the search.
Check for support
In the event of a claim — especially in the case of life insurance — the condition of those involved, especially family members, is emotionally very difficult. Adequate support from the broker for referrals due to emergency situations will be of special importance to the family.
Thanks for reading this article by ExtNext, hope you will learn something about life insurance contract.
