In our day to day there can be many difficult situations that we try to protect by contracting insurance policies. Insurance.
Doubts regarding the Insurance that most people have contracted are frequent and in many cases they do not know where to go to solve them.
One of the problems that can arise around a policy is the death of the policy holder. Insurance policy.
If you have doubts about what happens if the policyholder dies or you want to make a change, contact Euroteide Seguros us and we will advise you on everything you need, this is how we have been doing it for 26 years from the city of Los Cristianos in the South of Tenerife, for the entire Canary Islands and Europe.
What happens after the death of the policyholder
The taker is a fundamental figure in the operation of the Insurance, since, among other things, it makes the payment of the corresponding premium. That is why his death causes a situation that can be complicated in some cases and for which there is a relatively simple solution.
In the event that the policyholder dies, a change can be made in the policyholder if the appropriate circumstances occur in the type of Insurance that offers this possibility. Otherwise, the policy will be canceled by death.
Will substitution be possible or not? depending on whether the policyholder was a natural or legal person and the type of Insurance referenced.
In the case of Natural persons, may be replaced by another person who appears in the Insurance, as insured or beneficiary, for a certain period of time.
If the taker was a legal person two cases can occur:
- Entity that replaces the company in the payment of the premium after the transfer of the activity of the policyholder company.
- The insured becomes the policyholder Insurance.
If none of the cases previously mentioned, the policy will be canceled and, if necessary, a new Insurance will be contracted.
Let's see what happens if the policyholder dies in the most common types of insurance:
- In the car insurance, the policyholder change is not possible, so the policy will be canceled with death and a new policy will have to be made. This is so because each driver has different bonuses and features.
- In the Life insurances, the death of the policyholder usually entails the resolution of the policy due to the occurrence of the loss for which it was contracted. The insured sum will be paid to the beneficiary and the policy will be canceled due to life insurance due to death.
- Funeral insurance. In this type of Insurance, as in the previous case, the insured loss for the policyholder is death, so the term of the policy will expire with the death and coverage of burial expenses by the company.
- In the Home insurance it is possible to change the policyholder after the death of the former. The heirs will be able to communicate the death and inheritance and make a change in the data of the policyholder in the Insurance company. This is explained by the calculation and hiring based on a property, so it does not depend on the person who hires it.
- The case of Health insurance is the opposite of the previous one. It is not possible to change the policyholder, since the health situations of each one are personal and directly affect the insurance policy. Therefore, upon the death of the policyholder, the policy is annulled.
Although these are the most common insurances, there are more Insurances, such as savings or dental, for which it will be necessary to see in their conditions if it is possible or not to replace the Policy holder.
Therefore, the death of the policyholder will have different consequences depending on the Insurance in question and the type of person, natural or legal, that it is.
Can the policyholder of an Insurance be changed?
To assess whether it is possible to change the policy holder, different variables that affect this possibility must be taken into account.
The policyholder may or may not be changed mainly depending on the type of Insurance referred to in the policy, whether the policyholder was a natural or legal person and whether the new policyholder was part of the policy.
Type of insurance
It is not possible to change the policyholder in all Insurance. For example, in Car Insurance it is not possible and, on the other hand, in Home Insurance after the death of the policyholder it is allowed to replace it.
In practice, most Insurances do not allow a change of policyholder, since they calculate the amounts of their policies based on the personal characteristics of the policyholder.
Natural or legal person
Both individuals and legal entities can be substituted as policyholders. In the case of natural persons, the substitute will have to appear in the policy and legal persons can be replaced by an entity that pays the premium or the insured that appeared in the policy can become the policy holder.
Included or not in the policy
To replace the policy holder of an Insurance when he dies, he must be a beneficiary or be part of that policy previously. Therefore, being included or not will determine if there is the possibility of replacing the policyholder in the case of natural persons mainly.
As we have seen, when the policyholder dies, it will sometimes be possible to replace him with another natural or legal person, meeting the necessary requirements. It is not possible to do so in all Insurances and the substitute will have to appear in the policy in the case of natural persons and be an entity or insured of the policy in the case of legal persons.
If you still have doubts about what happens when the policyholder dies, you do not know what your case is or you want to take out a new Insurance, Contact Euroteide InsuranceWe will be happy to help you with all your questions.