When contracting life insurance, it must be explicitly indicated in the policy who is entitled to receive compensation. It can be anyone the contractor declares as such, although the beneficiaries are usually the spouse and children.
However, the contractor must take some steps and, for that, it is important to know how life insurance works and how to proceed to receive compensation. This post will clarify the matter for you.
Keep reading and discover everything you need to enjoy the peace of mind that only life insurance can give you.
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 on the insured, beneficiaries, coverage, premium values and compensation, among others.
When contracting a life insurance policy, the insured chooses the coverage that best suits their reality, among the various existing options. Likewise, he defines the amounts of compensation that he considers sufficient.
At the same time, the insurer reports the value of the premium for defined coverage and the value of compensation in the event of an anticipated accident. While the company agrees to pay compensation, the insured agrees to pay the premium monthly.
In general, life insurance will also indemnify disability within the scope provided for in the policy. The main coverage may be related to:
- death (natural or accidental);
- permanent disability (total or partial);
- functional or occupational disability due to illness;
- medical, hospital and dental expenses;
- diets necessary for temporary disability;
- hospital stay;
- serious diseases.
These are the situations that the insurer indemnifies. However, if there is death or disability due to causes other than those covered by the policy, there will be no compensation.
Therefore, in the event of a claim involving any contractual provision, the contracting party must contact the insurer. In this sense, it is important that family members are informed about the existence of insurance, current coverage and ways to activate the insurance company.
How is compensation for the death of the insured?
In the event of a loss foreseen in the policy and that produces the death of the insured, the insurer must be informed with the communication of said loss. Generally, the person who does it 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) designated as the beneficiary(ies) of the insurance in the policy will receive the corresponding compensation within a few days of the death of the insured. However, some initial aspects must be met, as we will show below.
Before formally activating 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 notice) to fill out with the insured’s data and the reasons for the action, as well as documents such as:
- incident reporting, when applicable;
- death certificate, if any;
- marriage and birth certificates, depending on the beneficiary;
- RG, CPF and proof of residence of the beneficiaries.
It is interesting to contact the call center beforehand to verify the initially necessary documentation. Most insurance websites, for example, have this information.
Accepted causes of death
The causes of death admitted for the purposes of compensation for life insurance are those derived from natural death or fatal accident. In addition, according to the Civil Code, in case of death by suicide committed more than 2 years after contracting the insurance, it is necessary to have compensation.
Forms of action of the insurer
To activate the insurance company, the person must contact the respective call center. This activation can be done by phone or in person. Thus, in many cases, also through the insurer’s website, on an exclusive page for this purpose.
How important is life insurance and who is entitled to it?
Anyone who values the peace of mind of knowing that in the event of a sudden absence, their loved ones will be financially supported, are capable of taking out life insurance. But, in reality, the importance of this insurance goes much further.
Consider, for example, family financial planning and the expectation of ensuring that living standards are not abruptly altered if there is an unexpected departure. In this case, the life insurance compensation avoids the need to dispose of family assets for daily survival.
Also from a financial point of view, the cost-benefit ratio of this investment is very favorable for the insured. Therefore, only consider the amount applied monthly and the amount of compensation that may be required at any time.
Keep in mind that life insurance compensation is not limited to the death of the insured. The disability condition that prevents the continuity of their productive activities is also a factor that triggers the insurance.
Likewise, the occurrence of a serious illness that affects the insured. In fact, life insurance can be adequately customized to meet the characteristics and needs of the insured, making the appropriate 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 steps to get the most suitable option. Follow these essential tips for this purpose:
- know in detail your personal and family needs;
- consider necessary spousal support in the event that you are unable to continue to provide the support;
- Evaluate the basic and additional coverages available in light of your demands;
- remember the need for funeral assistance;
- rely on an experienced and reliable insurer, well established in the market;
- take into account the inclusive differentials of the insurance offered, especially in the case of chronic diseases.
As you can see, the importance of life insurance, who is entitled to compensation, and how to call the insurer are essential facts to share with family members. With this, it is possible to further streamline the procedures in the event of the need to use insurance.