One of the most popular products from insurance companies is life insurance. It is insurance that covers a risk that sooner or later will end up happening, since if there is something inevitable in our life it is that, sooner or later, we will stop being here. Life insurance is a very important help for those people who want to cover the needs of their family or other beneficiaries if that moment happens ahead of schedule. In addition to death, life insurance can cover other additional risks, such as the ones below.
Life insurance risks and guarantees
The risks covered by life insurance can be divided into two types, depending on what is agreed in the policy:
- The base or main risk: it is the risk of death of the insured from any cause.
- Additional risks : these are other risks of disability or death due to special causes, such as serious illness, permanent and / or absolute disability, and death by accident (general accidents, traffic accidents, etc.).
Base or primary risk of life insurance
The main risk covered by ASDA life insurance is death from any cause. In reality, this risk may be limited by some clause of the policy and the conditions must be read carefully to know if there are any exclusions. For example, in some policies, the risk of death during risk sports may be excluded , which means that if you die during high mountain skiing, for example, the beneficiary would not be covered by the insurance.
The lack of suicide is very typical, which serves to prevent a person who plans to commit suicide from previously purchasing insurance.
Additional risks of life insurance
In addition to the main risk, life insurance can cover various additional risks, such as any of the following:
- Serious illness: covers the risk of suffering a serious illness, within the catalog of illnesses included in the policy. This coverage may be canceled when the insured reaches an age, at which time the probability of suffering from such a disease is more frequent.
- Temporary or permanent disability: either due to accident or illness in the personal or work environment, some life insurances offer additional coverage for the risk of becoming incapacitated to carry out a professional or work activity due to an accident.
- Disability or death by accident: another additional coverage that life insurance can offer is that of the extra compensation for disability or death in the event of an accident, including a traffic accident. This coverage is special because it is usually greater than that of the main insurance guarantee, and can be double or triple when certain conditions are met.
In this way, contracted life insurance can have a coverage structure such as the following:
Guarantee for death from any cause : 250,000 pounds (one year grace period for suicide and death excluded during the practice of risk sports).
Absolute permanent disability guarantee for any cause : £250,000 pounds
Additional guarantees :
Serious illness: £250,000 pounds.
Temporary disability due to accident: £50 pounds/ day (1,500 pounds/ month).
Absolute permanent disability due to an accident: £250,000 pounds in addition to the guarantee of absolute permanent disability for any reason.
Death due to traffic accident: £250,000 pounds in addition to the guarantee of absolute permanent disability for any reason.
Life insurance is a very important product for those who want to live with the certainty that if one day they cannot help their loved ones, either due to death or due to a serious illness or accident, they will have the financial support that will help them get ahead.
The risks it covers can be varied, so it is always a good idea to think carefully about what you are being exposed to, either due to professional activity, such as day-to-day, personally and thus dimension insurance accordingly. Basic coverage may fit well, but it is always wise to think of something else to cover other important risks.