Life insurance is increasingly popular in Spain, but it is true that there are still many doubts about it. One of the most common is what coverage these types of products offer or if it can be hired by a person with a high-risk profession. And it is that, contrary to what most people believe, a life policy It not only covers the death of a person, but also other circumstances that may prevent the insured from continuing to work. In the following article, we explain what life insurance covers and other questions you may have.
What is life insurance and how does it work?
Life insurance is a contract that is carried out between an insurance company and the insured to establish a sum of money that will be paid to the beneficiary of the policy in the event of the death of the insured person. The calculation of the price of the premium and the amount to be paid to the beneficiary is variable and takes into account, among other aspects, the profile of the insured person, age and the amount to be insured.
In the event of total or absolute permanent disability , the insured will receive all the insured capital provided that the disability is caused by an illness or accident. Events caused by the insured’s recklessness or intentionally are some of the circumstances that would not be covered by life insurance.
As you can see, life insurance not only works as an economic support for the insured’s relatives in case one day this is needed, but it also protects him against unexpected situations that could prevent him from developing his professional activity.
What type of death does life insurance cover?
When might your life insurance not cover your death?
Life insurance coverage is limited to that contracted by the policyholder himself, however, there are a number of circumstances that these products do not contemplate within the coverage and guarantees.
Suicide is one of the situations that are not covered by life insurance. Likewise, gross negligence or reckless acts are penalized. An example would be that of a person who dies due to driving under the ingestion of narcotics.
Other situations in which the insured company would not pay the agreed amount if the insured dies would be:
- Acts involving military or civil confrontations.
- Sports with a certain degree of risk such as car racing or mountain climbing.
- Accidents caused by natural phenomena such as volcanic eruptions, earthquakes or floods.
- Death caused by a beneficiary intentionally.
Non-traumatic pathologies (strokes or heart attacks), not paying the premiums up to date or not having declared a health problem when filling out the questionnaire, are other reasons why the insurer could refuse to pay compensation to the beneficiaries of the insurance. policy.
Read more about