What you should know about insurance

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Insurance protects you financially against the risk of losing an asset that would be difficult for you to replace.

You can ensure the asset that costs you the most work or that you appreciate the most, represents a great value for you and that you could hardly return with your resources. 

If you have the idea that insurance is a drain on your budget because you may pay for it for many years and still never collect it, perhaps you should analyze whether in the event of an illness, a vehicular accident, or a sudden death, you will have the means enough money to cope. If the answer is no, this may change your perspective and see in insurance not an expense but an act of anticipation and savings that become effective in the event of an unwanted incident, for the future of your children, for the protection of your assets, etc.

Depending on the goals you have in life, what you plan to spend, your own needs, health, etc., you can take out life, car, personal accident, major medical, home, and dental expenses, among others. There is currently a wide variety of insurance on the market, so prioritize and focus on the one or those that you need. Here are the five most common.

LIFE INSURANCES

In this insurance, the insurance company pays the beneficiaries an insured amount in case of disability, survival, or death of the insured, under the contracted conditions, being a fundamental requirement that the policy is in force. Among the main insurances are the following:

Temporary. This is 100% for death and its validity is for the specific time for which it was contracted. If you were to die, the beneficiary (which can be one or more people) will receive the insured sum, but if you survive, the insurer will not return your money.

The terms to hire him range from one, five, ten, or 25 years or at an advanced age (60 or 65 years). Your payments are the same during the validity period. When that period ends, the insurer recalculates the value of the premium depending on your age and your state of health. If you are going to hire it, ask if it renews automatically because not all of them are renewable.

Ordinary of life or life. This insurance lasts for the life of the insured. If he reaches the age of 99 and is still alive, he receives the entire sum insured.

Endowment insurance. It is made up of risk insurance and savings insurance, by which, if the insured dies before the established term, the stipulated compensation will be delivered to his beneficiaries, and if he survives said term, the established insured sum will be delivered to the insured himself. for the contract.

You can mainly hire them in terms of 10, 15, 18, 20 and 25 years. The costs may vary with age, gender, health status, whether or not you are a smoker, sum insured, savings plan, additional coverage that the insurance has (for example, disability).

VEHICLE INSURANCE

Driving a car involves risks and responsibilities that can affect your assets, your health, or that of third parties.

Car insurance protects you against damage or total or partial loss of your vehicle in the event of an accident or theft, as well as medical expenses generated by the accident.

The most common forms of this type of insurance are limited coverage or comprehensive coverage. The first covers:

a) Total theft of the car. Covers the total loss of the vehicle due to theft or assault, as well as material damage and losses as a result of said event.

b) Civil liability for damages to third parties. Covers the liability that the owner may incur for material damage caused to third parties in their property, bodily injury, or death.

c) Medical expenses. It covers the payment of medical expenses for bodily injuries to the insured or the other occupants of the vehicle, as a direct consequence of accidents that occur when they travel in it.

d) Legal defense and advice, in which the company offers you professional legal services in the event of an accident or total theft of the car.

For its part, the broad coverage includes, in addition to the above risks, material damage that guarantees the repair of direct damage suffered by the vehicle as a result of the collision, overturning, glass breakage, fire, floods, strikes, or natural phenomena. , among others.

Each company has its criteria to estimate the cost of insurance based on the year of the vehicle and model, payment periods, in addition to user data, such as the area where they live, age, sex, and marital status, among others. If you have any questions about what is included in the limited and broad coverage, ask the insurance agent.

INSURANCE OF MAJOR MEDICAL EXPENSES

They cover the injury or disability that affects the personal integrity or health of the insured, caused by an accident or illness.

In this type of insurance, the insurer, by paying the corresponding premium, covers hospital expenses, medical care, surgical interventions, food, medicines, clinical tests, X-rays, etc., for the insured and, where appropriate, for dependents. financial when so agreed in the insurance policy.

For each insurance plan, there is specific coverage (basic and non-basic), so it is convenient that you review the content of your policy and verify that the coverage of the plan you contracted covers your needs.

To determine the amount of the premium, the insurer considers factors such as age, insured sums, contracted coverage, and health status, for which it will apply a medical questionnaire. It is important that when you answer it you do so truthfully since not doing so empowers the insurer to terminate the contract without any benefit for the insured.

If in the future you plan to change your company and even your plan, the insurer must endorse you, so that they recognize your seniority, that is, the time you had been covered by the previous coinsurance. Otherwise, likely, the new company will not agree to cover pre-existing illnesses (any medically diagnosed illness before signing the contract) and you will have to go through the waiting time again for those situations or illnesses that the insurer requires. (pregnancies, cancer, HIV, among others).

EDUCATIONAL INSURANCE

They guarantee, through a savings plan, an amount of money that allows them to cover the university education of minors. The payment of this insurance can be monthly, quarterly, semi-annually, or annually.

Educational insurance generally focuses on covering university studies, because the population with higher education is smaller compared to other educational levels.

Educational insurance works like any life insurance with a savings fund. Insurers are responsible for offering this type of product and the beneficiary will receive an insured sum on turning 15, 18, or 22 years to continue their studies.

It is up to the parent or guardian to define the university (public or private) where the minor will study, the degree, or university career. At all times he must consider the income available to him. The insured sum varies if the contribution is for a career in a specific area (social and administrative, medicine and engineering, among others).

If for any reason you want to cancel this insurance after one or two years, you will not recover any amount due to the administrative expenses incurred by the insurer. After this period you will get a percentage of the sum insured.

ROOM INSURANCE

The companies that offer it make the quote according to the area where you live, and the risks to which the property is exposed. For example, the premium will be higher in places with a higher frequency of earthquakes, such as Mexico City, Oaxaca, Puebla, etc. The premium also rises if your house is located in an area with a high crime rate.

This type of insurance is classified as follows:

1. The contents insurance covers furniture, for example, appliances, clothing, jewelry, works of art, etc.

2. The theft policy is only paid when it comes to robbery with violence.

3. Natural disaster insurance covers damage caused by earthquakes, hurricanes, or floods, among others. It has two modes:

a) The first covers construction only.

b) The second also covers its content.

4. The fire insurance covers all the assets inside the house, in addition to the building’s facilities.

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By Michael Caine

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