Many people think that a life insurance policy is a financial compensation for the family when the policyholder has passed away. Although this is partly true, it is only one of the many features of a life insurance policy.
In this article, we will try to better understand what life insurance covers, as well as the importance of contracting it through an Insurance consultancy of quality like Euroteide, in order to be able to take more advantage of the coverage of Life insurance and therefore, to be able to better enjoy it.
What is a Life Insurance?
Usually life insurance is intended to cover all the expenses derived from the death of the person who has taken out the policy. Once the insured person has passed away, the relatives, or any other person who is a beneficiary of the Insurance, will receive an economic compensation or annuity, which has been established in the life insurance policy itself.
This would be the basic coverage that life insurance has and the one that is mainly known by most of the users. However, it is important to point out that there are more clauses that can be contracted in the insurance, so that they can be much more personalised, depending on the needs of each individual. Let's take a look at some of the most common coverages.
What coverage does Life Insurance have?
Each life insurance has additional coverage that can be contracted depending on the needs of each client. For this reason, the same company can offer different life insurance to each of its clients, if they decide to have certain coverage to the detriment of others.
Before continuing, if you are going to take out life insurance, in addition to reading it carefully, you must pay attention to the small print to make sure whether these coverages are contracted within the insurance or not.
Disability coverage
Disability cover is one of the most reassuring types of cover offered by a life insurance policy. The reason is quite simple and it is that it is not necessary for the person included in the insurance policy to die in order to be able to receive the compensation from it, it is enough if he/she suffers a disability.
With this coverage, in the event that the person listed in the Insurance suffers a disability, whether permanent or absolute that prevents it from carrying out any type of work activity, Life Insurance will pay a cash income for the duration of the insurance cover. In this case, Life Insurance is postulated as a rather interesting solution to one of the most common problems of an invalid, the lack of income due to not being able to work.
This coverage is particularly relevant if, for example, the person who takes it out it is the main source of income for the family. In this way, in the event that the person stops working and therefore the income stops coming in, the family will be protected thanks to the income reported by the insurance.
Accident coverage
In general, the coverage that life insurance usually offers is for natural causes. However, there is also the possibility of contracting a coverage that covers against any other type of problem, for example, if we have a traffic accident.
In this case, with this coverage we will be insuring an additional capital sum if the death is due to this cause. Although life insurance always covers financially when it comes to a death, if you have any of these additional coverages the amount to be received will be higher.
In this way, if you have taken out cover for death due to a traffic accident and it is unfortunate that the policyholder has died in such an accident, the amount that corresponds to the family will be greater. This amount will be made up of the insurance cover itself, plus the bonus for having had the accident cover.
Sickness coverage
Another advantage that life insurance has is being able to anticipate the capital received from it in the event that you diagnose a serious illness.
In the event that the insured suffers from a major health problem such as a heart attack or cancer, through this coverage you can pay part of the capital or all of it, depending on the amount that has been contracted, so that you can enjoy it while you live.
If you are considering taking out Health Insurance, here is our guide to take out Health Insurance.
Conclusions
These are some of the most common coverages that life insurance has, but depending on the company there may be more possibilities.
In short, life insurance is the best definition of the word insurance, because thanks to it, we ensure the future and the financial support of those we love the most, when we are unable to provide it ourselves.
You can count on the peace of mind of a consultancy such as Euroteide Insurance to guarantee that the insurance will be of the greatest benefit to the policyholder. If you are concerned about the welfare of your loved ones, a life insurance is something you should take into account.
Do you want more information about Life Insurance? Here are our contact details. Do not hesitate to contact us for any questions you may have.