Life & Personal Insurance: Types, Premiums and Policy Features

Insurance of Persons

Insurance of persons: The insured interest value is generally fixed and determined by the entities agreed upon before the incident occurs.

Life Insurance

Life insurance commits the insurer, upon payment of a premium, to provide the agreed service (a lump sum or periodic payments to the insured or a designated person) if the circumstances specified in the policy occur. These circumstances can include the insured dying before a certain date or surviving to a certain age. You can purchase life insurance on your own life or on the life of a third person.

Classification of Life Insurance

• Life insurance in case of death (death benefit)
• Life insurance in case of survival (survival benefit)
• Joint life insurance

Premium (Bonus)

Premium (bonus): This is the amount paid by the policyholder in exchange for the benefits they will receive if the event covered in the policy occurs.

Policy Features

• a) Reduction of the policy: If the insured fails to pay an agreed premium, they do not always immediately lose all rights; however, in some cases the contract may be terminated according to the policy terms.
• b) Surrender (rescue) of the policy: The law recognizes the right of the insured to terminate the contract before its expiration and to reclaim the amounts paid to date (surrender value). The policy must list the conditions under which this may be done.
• c) Rehabilitation of the policy: This refers to restoring coverage after a lapse under the conditions established by the insurer.
• d) Pledge of the policy: The policy may be pledged in the same way as other securities. If assignment or pledge is ordered, it should be made by endorsement. The policy is delivered to the creditor as a guarantee of payment. In the event of non-payment, the creditor may require the insurer to pay the amount provided for in the policy.

Accident Insurance

Accident insurance is designed to cover injuries that may occur to the insured as a result of accidental or violent causes.

Disease Insurance

Disease insurance is a type of coverage that has emerged as a complement to the comprehensive coverage offered by social security. It is characterized by financially indemnifying the insured up to a maximum amount specified in the policy in the event of contracting an illness.