Life insurance: points to watch out for so as not to make mistakes

Life insurance: points to watch out for so as not to make mistakes


The size of the insurance market makes it very easy to get lost. The jargon can also be incomprehensible to more than one. There are, however, some important points that should always be considered in a protection approach. Here is a reminder of a few details to consider when purchasing life insurance next time.
Points to watch out for at the start

Insurability is the starting point of all life insurance. It represents the ability of a person to meet certain conditions issued by the insurer, causing the latter to agree to insure the person. These clauses are detailed in the declaration of insurability. They concern, among other things, the insured's age, state of health, job, lifestyle, consumption, etc.

The insurance proposal is an important document, signed by the future insured as a commitment, considered representative, but it is not the contract. It is therefore very important that the future insured check whether there are any differences between the two, in which case he can choose to refuse to sign the contract emanating from the proposal.

The entry into force of the contract is the date when the actual insurance coverage begins. However, even if all the documents are completed, you are not necessarily covered. To do this, the insurer must accept the proposal without modification, you must have paid the first premium and finally, there must not have been any changes in the state of health of the insured since the signature of the proposal.

You might be wondering why premiums aren't universal for everyone. The answer comes down to 3 factors. First, since each person is unique, their general condition (sex, age, place of residence, state of health, employment, consumption (tobacco, alcohol and drugs) and lifestyle) influences the premium to be paid. Insurance itself, the amount insured and the duration, vary the premium, and finally, economic conditions also have a role to play, particularly with regard to current and expected interest rates.

In this vein, you will have to choose between two types of premiums: fixed or variable. In the first case, the cost of the bounties will never increase. However, they will be more expensive initially. In the second case, they will increase or decrease over time. It will be up to you to choose your product wisely according to your budget and the duration of the contract.
Other relevant information

It is likely that your health will deteriorate over the years. In this case, you do not have to inform your insurer. Indeed, the latter assessed your condition when the contract was issued, which remains in effect until it expires.

At the time of death, many wonder when the amount will be paid by the insurer. The latter must do so within 30 days of receipt of the requested supporting documents (proof of death, of the age of the insured or that demonstrating that the person claiming the insured amount is entitled to it).

There are finally 2 types of beneficiaries: revocable or irrevocable. First, you will have the freedom to change the person designated during the contract, without involving your current beneficiary. Unlike, if your insurance has an irrevocable beneficiary, the beneficiary remains so, as long as he has not agreed in writing to no longer be. In the event that the type of beneficiary is not specified, it will be presumed revocable.

Infoprimes experts will make a point of helping you assess the scope of these important details when signing your next life insurance contract. Don't hesitate to contact them!