How much is high risk insurance : More and more people are choosing to take out Life insurance to protect their loved ones in the event of the death of the policy holder, especially if this is the main livelihood of the family. In this guide we bring you one of those life policies that cover the backs of spouses and children of the insured. We remind you that one of the main things you have to do when buying insurance is to inform you well. With Internet you can compare among the main companies Worldwide to save as much as possible and find the product that best suits your needs.
What is a Life Risk Insurance?
The Life Risk insurance could be defined as an insurance for the protection against the death of the policyholder of the beneficiaries that he chooses. The premium is usually annual, and its price is calculated according to three main factors:
- The age of the insured,
- his medical history and
- the chosen capital.
The relationship is simple: the more years the policyholder has, the more expensive the premium will be. The same applies to capital, to more capital, higher prices. Regarding the medical history, it is very important to indicate to the company any illness that we have previously, since they can increase the price of the insurance or, even, they can make that the hiring is denied.
The operation is as follows: if the policyholder dies, the beneficiary will receive the capital marked in the contract with the aim of protecting it in the event that the insured is missing. If the policy comes to an end before the death happens, the insurance will be without effect and no compensation will be granted.
Also keep in mind that you can also purchase a Mixed Life insurance, which mixes Life Risk insurance and Life Savings insurance. This modality protects the beneficiaries in case the policyholder dies but also grants you a fixed amount in the contract in case you reach a certain age without dying.
Types of Life Risk
Life Risk insurances can be classified into two groups:
Whole Life Risk Insurance
It consists of the payment of the capital stipulated in the contract after the death of the policyholder before the expiration of the contract. Premiums can be paid in different ways: monthly, quarterly, annual, etc.
Temporary Life Risk Insurance
These policies cover death for a certain period of time. This may be the case, for example, when a life insurance is subscribed for the amortization of a loan, such as a mortgage. This is done so that, if the insured dies, their loved ones do not have to face any debt.
For whom is a Life Risk insurance recommended?
They are usually policies contracted by the head of the family, that is, by individuals who have dependents and whose income they depend on. The objective is to ensure the sustenance of the loved ones of the policyholder in the event of a death.
Also, as we have indicated before, they are usually hired by those who have a mortgage. In fact there are many banks that establish as an indispensable condition that the mortgaged subscribe a policy of this type.
Another group that usually makes use of these products are people with high-risk professions, such as policemen, firemen, athletes, etc. It should be noted that many companies do not accept this type of client because the chances of suffering a fatal accident are much greater and, the insurers that do accept them, do so with a significant increase in the premium.
What does a Life Risk insurance not cover?
Keep in mind that there are certain cases that are not covered, especially if the death occurs for certain reasons.
For example, one of those cases not included is suicide, since it is understood that death has been provoked voluntarily and consciously by the insured. If it is true that there are some companies that do cover and compensate in case of suicide, but a grace period applies, so that it is not possible for a person to hire a policy of this type and take his life promptly with the objective that the beneficiary obtain a certain monetary amount. This grace period also applies in the event that the insurance conditions change, how to activate a canceled policy or expand the capital.
Another situation not included is the death caused by one of the beneficiaries on a voluntary basis. In this case, the insured capital is normal for the policyholder. This is obvious since there could be situations in which someone would seek the death of the insured to obtain a benefit.
Also the deaths caused by imprudent acts of the insured do not give option to receive any type of monetary amount. For example, if the policyholder dies in an accident in which he was drunk or under the influence of drugs, it is considered an act of irresponsibility. In case of a traffic accident, we must assess who has caused it and if it has been voluntary or not. On the other hand, you must also inform the insurer if you practice any type of risky activity or sport since they may not be sure if they know it or that they raise your premium. If you do not do it and you die while doing any activity of this type, it may be that the beneficiary is not compensated.
In addition, there are some situations that are covered by the Insurance Compensation Consortium as terrorist attacks, war situations or extreme nature phenomena. Want to Know More About Which Insurance is best for your Teen , Want to know whare to find Best Cheap High Life Risk Insurance