This is because taking out life insurance, or any other insurance, is full of technical information. Which are often not easy for the consumer to understand and, therefore, keep many people away from this great asset protection tool that is insurance.
Therefore, check out the following text and clear all your doubts regarding the terms of the insurance policy!
What is an insurance policy?
The Insurance Policy is a document that contains information about the contracted insurance and must be provided by the insurer to the insured immediately after contracting.
2 – What is the insurance policy for?
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In addition to informing the insured person about the limits of the insurance contract, the policy also serves so that he can prove that he contracted the insurance if he needs to.
3 – What are the main types of policy?
The policy types are as follows:
Open or closed policies
Open policies are those that can be changed after contracting, either to be expanded or to be restricted. Therefore, values, risks and other characteristics can be changed before the end of the contract.
Closed policies start and end the same, allowing no changes.
Individual or collective policies
Individual policies are those in which the consumer goes to an insurance broker or insurer and hires insurance for himself.
Collective insurance policies are those provided by companies to their employees, by trade unions to their workers or by trade associations to their professionals. It is when there is a collective and it takes out a life insurance policy for everyone who is part of the collective.
4 – What is a redeemable life insurance policy
Redeemable Life Insurance policy is the one that informs and proves about the redeemable Life Insurance, which guarantees the insured person the possibility of redeeming the value of the insurance while still alive, that is, it is an insurance that the person does not need to die for use.
5 – What should be included in the policy?
In addition to understanding the terms of the insurance policy, you also need to know what should be included in it.
According to the Civil Code, the Insurance Policy must include the following information:
a) The risks assumed – is what is being insured, whether a car, a home or a person’s life, as well as against which risks (fire, theft, death, accidents, etc.).
b) The beginning and end of its validity – the beginning date and the end date of the insurance contract.
c) The warranty limit – here are the amounts that can be paid for what is insured.
d) The premium due – the premium is the amount that the policyholder pays the insurer for the insurance.
e) The name of the insured – Insured is the person who contracts the insurance.
f) The name of the beneficiary – beneficiary is the person who will receive the compensation in the event of implementation of the insured risk, so that the insured and the beneficiary can be the same person or different people depending on the type of insurance contracted.
6 – What is the value of the policy?
The value of the policy is nothing more than the value of the insured property. It is the ceiling that the insured can receive.
As an example, in the case of a car, it is the replacement value of the car. As for life insurance, it is the value that the insured person understands as sufficient to support his family in his absence.
7 – And what is Insurable Risk?
Among the terms of the insurance policy, one of the most questionable is the insurable risk.
Insurance risk should always be a possibility. We all take risks, some risks are certain, other risks are uncertain (possibilities).
For a risk to be insurable, it must be either a possibility or uncertain.
That is to say, the insurer may refuse to carry out an insurance contract for a risk that is certain, that is, it is known when and how it will happen.
Therefore, insurable risk is a risk that the insurer accepts, as it is not certain when, how or if it will actually be implemented.
8 – And what is Insurable Interest?
Insurable interest is what can be the object of an insurance contract.
Our legal system allows you to ensure any interest, as long as it is lawful.
Therefore, you can insure your crops, your car, your house, your bicycle and even your life.
However, a trafficker will not be able to insure a load of drugs that will be transported, for example, since it is an illicit load.
