Life insurance is undoubtedly a good investment that will allow your family to be in the most beneficial situation possible if you should become disabled, totally and absolutely incapable of performing your work or in the event of your death.
Thus, life insurance is emerging as a excellent guarantee for the beneficiaries of the policy - normally the family - in the event of the death of the owner. It is not surprising that life insurance is one of the most common and contracted policies by the Spanish. In fact, more than 30 million people in Spain have a life insurance policy, especially those over 35 and with family responsibilities.
In this article we will explain what life insurance is and how it works , and if it is possible or not to make several life insurance policies compatible.
In any case, it is best to contact professionals in the sector such as Euroteide Insurance, as they offer the Life insurance that best suits our needs and those of our family.
What is a Life Insurance?
A Life insuranceis a type of Insurance that protects the beneficiaries of the Insurance policy - normally, the insured's family - upon the death of the insured, although also in other situations such as disability or incapacity for work. Thus, the life insurance guarantees the economic well-being of the insured's family in the event of any of the above events.
In this way, the insurer, in the event that the insured dies or becomes disabled, will pay a specific amount of money - the insured capital - to his family. In exchange, the insured will pay a premium.
How does life insurance work?
Life insurance is a contract between the insurer and the insured.
By virtue of this contract, the insurer and the insured person agree on a sum of money that the insurance company will pay to the beneficiaries of the insurance, the insured capital. In this way, in the event of the insured person's death, disability or incapacity to work, his family or the beneficiaries of his life insurance policy will receive the insured capital.
However, the insured must give a consideration, the payment of the premium for the Insurance, whose disbursement can be annual, semi-annual, quarterly, monthly.
Is it possible to take out or combine several life insurance policies?
The Life insurances entail the payment of compensation to the beneficiaries of the Insurance in case of death, disability or incapacity of its owner.
Like we have already said, the compensation that the beneficiaries of the Insurance will receive will depend on the capital insured by the client. However, how many policies can be contracted? Can you have more than one life insurance policy subscribed?
As a rule, it is compatible to have contracted several Insurances simultaneously with the same insurance company or with different insurers. It is not a problem and it is possible and absolutely legal to have two or more Life Insurance policies if you want.
Without a doubt, having more than one Life Insurance will allow us to better protect the beneficiaries of it and to cover all the events that may occur, leaving life insurance beneficiaries in a better financial situation.
However, Law 50/1980 of the Insurance Contract establishes that a person cannot be unjustly enriched through Insurance. For this reason, a person may not be paid twice or more times for the same claim or accident.
In accordance with the Insurance Contract Law, you can take out a Home insurance with two different insurance companies. However, if the house were damaged after a fire, the holder of the Insurance may only collect the compensation once, since, otherwise, he could receive an amount of money higher than the value of the house- The total damages of the accident would be compensated in equal parts by the two insurers.
In any case, this provision of the Contract Law Insurance does not apply in the event of death, disability or incapacity of a person, since the life of a person is not susceptible of being valued economically.
Therefore, in the case of life insurance, not only can we contract as many life insurance policies as we want, in addition, our family or the beneficiaries of the Insurances will receive the insured capital of each and every one of the Insurances contracted. Let's put an example:
Let's imagine that, having a child, Maria decides to take out Life Insurance with an insured capital of 300 euros, which her family will receive in the event of her death. However, years later and after the birth of two other children, María decides to take out another Life Insurance with an insured capital of 000 euros. If Maria passed away or would be incapacitated for work, her family will receive the insured capital of both Life Insurance policies, that is, 700 euros.
What must be taken into account when contracting two or more Life Insurance policies
When hiring two or more Life insurances , some doubts or questions may arise that must be taken into account. They are the following:
- The beneficiaries of the different life insurance contracts may be different, who, in the event of death, each beneficiary will receive the capital insured by each Insurance policy.
- Life insurance can be taken out with the same or different insurance companies.
- All Life insurances taken out in Spain are registered in the Register of Insurance Contracts for Death Cover. So, we will be able to verify if a relative who has died had contracted more than one Life Insurance, so that none of the policies remain uncollected. However, it is necessary to request this information within a maximum period of 15 days after death, in person or via the Internet.
On the market, and especially in Tenerife, there are insurance professionals who can offer us those life insurance policies that best suit us and the needs of our family and, if necessary, complement them with optional guarantees.
At Euroteide Insurance we can help you choose and advise you of the options that exist and their variables, to offer you the one that best suits you financially to ensure that your family can have the option of taking it out. So that in the event of death or having to use the other guarantees, they will be in a favourable financial situation.