In this article, we will explain everything you need to know about life insurance, during all the phases of the contracting process.
Having a life insurance policy makes a big difference in the perception of the future and the peace of mind with which you face your day-to-day life. This is something that 43.49% of Spanish households that have life insurance know (according to EPF data). But it is not something you should do lightly.
Our recommendation is that, if you do not have a life insurance policy, you should look for and take out one, since, in this way, you will be actively taking care of your future and that of your loved ones. This decision can change your family’s life if at some point you miss them, or suffer an illness or disability that prevents you from taking care of your monetary obligations and debts.
The three stages of taking out life insurance.
But it is not a decision you can take lightly, without thinking about it, without previously informing yourself of all the options and without taking into account the variables of your personal situation. Read on, because we’re going to tell you everything you need to know about life insurance, both before and during the process of taking out the policy, so that the decision is the right one (and solves your problems instead of giving you problems).
There are three important phases in the process of purchasing life insurance. These could be summarized as: a preliminary phase / a decision phase / a contracting phase.
First phase: initial reflection before choosing an insurance policy
What insurance do I need? Think about your life situation to decide which life insurance policy is best suited to your needs and circumstances. To do this, you can ask yourself these questions: Am I married? Do I have children? Do I have a mortgage? Am I single and have no family responsibilities? You can read more about it here.
What insurance is available on the market? Once you have thought about your situation, you should think about which insurance is best suited to it. The choice of one type of insurance or another is closely related to the type of coverage you need. Here are the options available:
Life and disability insurance
Professional life and disability insurance
Double capital life insurance in case of accident
Triple capital life insurance in case of traffic accidents
Life insurance for two spouses
Life and critical illness insurance
Women’s life insurance (very similar to critical illness insurance, but covering women’s specific illnesses such as breast or uterine cancer)
Life and mortgage insurance (this is life insurance that must be taken out when signing a mortgage).
3. My age is an important factor: The earlier you take out the insurance, the cheaper it will be. Between the ages of 30 and 50 is when it will be most useful to have life insurance to guarantee the economic stability of the beneficiaries if the insured dies or has a serious health problem.
4. How much can I afford: How much does life insurance cost? What is the maximum premium I can afford? This is an important factor that you should evaluate, but always bearing in mind that the premium you want to pay corresponds to an insurance policy that covers your needs.
Next comes the second phase: documentation and comparison of companies.
Once you have chosen the life insurance that suits your personal circumstances, it is time to compare companies and policies. At this point, with a clear idea of your needs, you will look for specific information about the companies, prices, etc.
Compare coverage and prices. Our comparator is an invaluable help in this step.
Think about whether you need personalized coverage and find out if the company you have chosen can provide it.
You are now in the last phase. Here you will find out in detail what you are signing.
Read and understand the conditions: Don’t let the small print play a trick on you. It is very important that you read every last line of the coverages and exclusions of the life insurance policy to know exactly what you are signing. Only then can you have complete peace of mind.
Know your rights: As a person who takes out a life insurance policy, you are a consumer and, therefore, you have a series of rights, including the right to ask the advisor or the insurance broker for all the information you consider necessary about your policy. If any clause is unclear, or even incomprehensible, the person you are going to sign with has the obligation to clarify it for you.
Name the beneficiaries you wish: It is very important to designate in the policy, with first and last names, the person or persons who will be the beneficiaries of the policy. If you fail to do so, your legal heirs will automatically become the beneficiaries. You can learn more about this point by reading our article on the subject.
Be very honest: Never lie when giving your personal information to sign the insurance policy. This is something that some people do to make the premium cheaper, but it is a big mistake that can invalidate the insurance completely.
Look for someone you trust who can advise you. If you need a trusted professional to help you, both in this phase of the process, as in the previous ones. You can contact us, either by phone or with our contact form.
We hope that this information about everything you should know about life insurance in the different phases of the contracting process will be useful for you to make this important and vital decision.