Taking out life insurance is not something we do every day. It is a service that you are going to hire and that will cover your back for the period of time that you choose. As we know that it is not easy, we are going to give you the best advice that we usually explain to our clients every day and that will surely clarify many of the doubts you may have about life insurance and its coverage.
We believe that to advise you must first explain how these insurance works. For this, we have prepared the 5 most important points and we have raised them so that anyone without prior knowledge can understand them in a clearer and less technical way. We have also added examples in each case so that you can see each case in a real way.
Let’s start with the coverages, how to choose the ones that interest us the most and why we should hire them.
Know well what coverage you can take out in life insurance
In order to assess a good life insurance, the first thing we have to be clear about is how life insurance coverage works, since in addition to death we can contract coverage for professional disability, total disability and diagnosis of a serious illness.
To be clear, we explain them in detail one by one:
Compensation for death
It is the main and mandatory coverage of life insurance . Our family or who we decide will collect the money we hire for the death, this main coverage is charged both in case of death due to illness and death by accident.
In addition to the main coverage, we can contract additional coverage that increases the amount of compensation if the death occurs by accident .
These complementary coverages double the amount of compensation if the death occurs as a result of any type of accident or triple the amount of compensation if the death occurs due to a traffic accident.
In some insurers, we can quadruple the amount of compensation for a total orphan if both spouses die in a traffic accident .
Compensation for professional disability
In our life insurance we can contract coverage for a situation of professional disability , which is recognized by social security as total permanent disability for the usual profession. This is a coverage that makes life insurance more expensive but recommended for high-income professionals for whom their standard of living depends largely on their specific profession.
These professionals tend to be at particular risk if they cannot develop their profession after an illness or accident, since even if they could do another job it would probably be lower paying.
To understand it, we can explain it with a couple of examples:
María is a surgeon and in case of losing the fingers of one hand due to an accident or illness, she could work perfectly as a teacher, but probably the remuneration for being a teacher would be less than that of practicing as a surgeon, so the coverage of professional disability of the her life insurance would be a perfect complement to supplement the reduction in income that she would receive when she began to collect total permanent disability for her usual profession and her teacher’s salary.
Luis is an underwater welder at an oil plant . In case of losing lung capacity due to a disease, you could be forced to stop welding underwater although you could continue working in less specific jobs, which in turn are lower paid, so supplementing the professional disability for your usual profession with a life insurance is a good option.
Compensation for absolute disability
In our life insurance we can contract coverage for the situation of absolute disability, popularly known as early retirement . This coverage guarantees us the collection of an amount of money if as a result of an illness or an accident we cannot continue working in any profession. We can contract additional coverage for accidents and double the compensation if absolute disability occurs as a result of any type of accident or triple the compensation if it occurs as a result of a specific traffic accident.
To understand this coverage well, we explain it with an example:
Pedro, an only son, 35 years old, works as a clerk in a company on the outskirts of his city, has his parents who are elderly and is single and without children, for which he has taken out life insurance that covers him in in case of early retirement due to an illness or accident, since he is concerned that no one can take care of him or not have enough savings for social benefits or home reforms that he needs to adapt to his new life circumstances and how he takes the car On a daily basis, he has also contracted all the accident supplements to increase the compensation, for this insurance he pays € 124 / year.