If we are interested in life insurance, the opinions of others may influence future choices. Among the opinions, you can find many myths about policies, which often result from ignorance of the terms of the contract.
What Is Life Insurance?
Life insurance allows for financial security for persons indicated by the insured person in the event of his death, and also gives the possibility of extending the scope of protection in the event of damage to health due to bone fracture, diagnosis of an illness, or accident.
Compensation goes to the insured, and in the event of a fatal event, to beneficiaries indicated in the contract. Unlike a property policy, it is possible to obtain compensation for the same event from several life policies purchased.
The life policy can be only protective or mixed, i.e. with the option of long-term saving or investing part of the premium paid.
What Is Included In The Life Insurance?
The life policy consists of a base contract and extensions. Usually, the basis includes only one event – the death of the insured person.
The extras are, among others died as a result of an accident or a traffic accident, serious illness, bodily injury, hospital stay, rehabilitation, medical assistance, childbirth, an accident at work, incapacity for work, or permanent disability.
Where And When Does Life Insurance Work?
Life policy works all over the world. The exception may be individual extensions, e.g. medical assistance, which is valid only within the territory of the country.
The insurance is valid on the second day after paying the premium. The exception may be some extras with grace periods, i.e. a temporary lack of liability on the part of the insurer. The grace period usually lasts from 1 to 12 months.
What Does The Cost Of Life Insurance Depend On?
The amount of premium in life insurance is the sum of several factors. The main ones are the health condition of the future insured, the amount of compensation ( sums insured ), and the number of additional contracts.
The price of the life policy is influenced to a lesser extent by the number of insured persons, age, type of policy (protection, savings, investment), and the nature of the policy (individual, group, school).
A relatively young, healthy person with no addictions and no risky hobby will pay a relatively less insurance policy with the same scope of coverage.
How Long Is Life Insurance?
The life policy is concluded for a period of at least 12 months – and then automatically renewed for the same period.
The exact duration of the insurance depends on its type:
- at least every 5-10 years in savings and investment strategies
- The insurance provided by indefinite policies expires when the insured person dies.
- Savings and investment strategies should be reviewed at least every 5-10 years.
- In most employment plans, the contract lasts until the employee is no longer employed by the organization.
- The defense in NNW school policies is valid for a year from the date of purchase.
How To Buy Life Insurance?
It takes just a few minutes to fill out a simple form attached to the life insurance comparison website.
After determining your own protection needs and the amount of compensation. You need to wait for contact from insurance agents. Who will prepare the most tailored offer depending on the selected policy?
You can buy the policy during the meeting with the agent. But such a meeting does not oblige you to anything. The aim is to find as many details as possible that will influence the amount of the premium.