Basic knowledge about life insurance
Why Life Insurance?
- Provides protection to your policyholders
- Guarantees a level of quality of life in accordance with the amount of insurance
- Provides compensation to the beneficiaries or legal heirs in the event of the death of the insured
Benefit
Sum of money called Insured Capital that can be paid in different ways:
- Single payment
- Financial income
Possible beneficiaries designated in the policy
- Family
- Partners
- Creditors
- Others
How to determine what type of Life Insurance to offer?
Analyze the needs of the beneficiary:
- Provide income for a specified period
- Settle debts of the Insured
- Provide a savings fund
Analyze the characteristics of the beneficiary:
- Occupation
- Gender
Classification of Life Insurance
- Temporary
- Universal Life
- Whole Life
- Variable Life
- Collectives
Factors considered by clients that largely determine the purchase of life insurance.
The presence of the company, the agent and the cost of the product.
The Producer / Advisor must:
- Be a faithful ambassador of the company
- Emphasize the good service it provides, highlighting its knowledge of the different products offered by the insurer
- Show that price is not the only important element in getting a good supply of insurance
What to inform the client when taking out life insurance
Requirement to fill out the Insurance Application
It requires personal and medical information, the type of policy and the amount of the Insured Capital to be hired. The Company uses this information to determine the issuance of the policy. When the policy is issued, the request becomes part of it and, any erroneous information that has been made may result in the decrease of the Insured Capital, of the coverage, in the rescission or the nullity of the policy.
Every request goes through a Risk Selection process
The Company's decision to insure a person's life is based on the application, medical examination (if required), statements from the person's physician, and special questionnaires. If an Insurer determines that the proposed insured has a higher than normal risk of death, their coverage is considered an aggravated risk, which means that the premium will be higher than that of a normal or standard premium.
To consider about the Beneficiaries
- It is convenient that the Beneficiary has knowledge about the policy
- It is advisable for the Insured to name an additional (secondary) beneficiary in case the primary Beneficiary dies before him.
- It is advisable for the Insured to carefully select the option of liquidating the Insured Capital. At BMI, only one-time payments are made.
NOTE | To make a claim for a life insurance policy, you simply need to contact the producer or the Company. The beneficiary has one year, counted from when he knows the existence of the claim, to claim compensation
Points to consider when purchasing life insurance
Start and end of coverage
The start and end of the policy must be clearly specified on the front of the policy
Policy Renewal
The proposed insured must bear in mind that, when coverage ends at an advanced age, it will be very difficult for them to renew or contract a new insurance (depending on the chosen plan).
Insured Capital
The insured must take into account whether there is any reduction in Capital at a certain age or for specified causes.
Additional clauses
You must inform up to what age the Insured Capital covers and what the cost of the same is.
