Following the development of the series of Concepts of Economy, today we will talk about life insurance. These insurances are quite common among all of us since it is used as indemnity coverage for beneficiaries in the event of the death of the beneficiary or to guaranty payment in some cases.
This type of insurance is regulated and covered by Law 50/1980 of contracts of insurance, being applicable the same or failing commercial legislation. a contract of life insurance to the different types of policies cover all the risks that may affect the existence, bodily integrity or health of the insured is defined.
The intrinsic characteristic of this contract is for compensation because the insurer is forced through a collection of schedule and within the limits established by law and the contract premium for the capital beneficiary, income or other agreed services, in the case of death or survival of the insured, or both events together.
This type of insurance can be done individually or collectively, as long as a group of people who are affected by the same risk is selected. A collectively, worth eg collective life insurance unit fire.
The insurance contract contains same elements that any insurance contract. These are:
Insurer: as a company that will provide the consideration in exchange for the premium.
Policyholder: person contracting the policy and assumes payment of the premium.
Insured: The person covering their risks by politics.
Beneficiary: person compensated with consideration of insurance.
Premium: Amount payable by the policyholder to the insurer in return for hedging.
The legislation in our country requires the express consent of the insured in the policy if the policyholder and insured are not the same people.
Another important detail about recipients is that these can be changed to the posterior formalization of the policy by the policyholder. This communication may be one of the reliable notification of policyholder to the insurer, or by inclusion in a will change life insurance beneficiaries.
Life insurance may be fixed or indefinite period depending on the hedged risk and payment of the insured coverage. In the case of life insurance, either the second year the premium payment is suspended, the insurance contract cannot be revoked, can only reduce the amount of the premium and redemption terms thereof .
Regarding death, insurance is excluded only those causes that are well covered by the insurance policy. In the case death of the insured beneficiary of the insurance thereof, the assets of the insurance are integrated into the assets of the insurer.
In suicide, as the most controversial case, we need to know if the policy covers this death unless otherwise agreed in the insurance policy. This means the voluntary and conscious death by suicide produced by the insured.
A number of premiums are very variable since the amount will be determined by the type of benefit that we will receive along with the characteristics of the payment thereof. In this case, there are multiple combinations of both raw configurations as reception capital.
A couple of typical examples to finish. Death insurance premium determined pay only for one year. We can pay a premium of 200 euros to cover the death of the insured for a year amounting to 100,000 euros. If the insured has not died at the end of the year, the policy ceases on arrival at maturity.
Capitalization insurance. We can establish a system of regular premium payments so that I reached the maturity of the policy or the death of the beneficiary receive capital with a capitalization of the same or guarantees established in the policy.
As we see, there are many variants of insurance as we can imagine in multiple configurations, so it is essential to read the scope of the policy very well and understand each of their points.