Life insurance purchase: how does it work?


The moment you sign up for a life insurance, it goes towards a series of economic coverages which emerge above all when the contracting party of the same is missing. In that case, whoever inherits the ownership of the policy in question can decide to continue to pay the premiums provided or proceed with a redemption of the same to address duties and priorities of various kinds. In any case, it is good to clarify that the death of the contractor does not authorize the heir on duty to make changes of any kind, since thelife insurance produce benefits irrevocable, so both he and the beneficiaries of the family unit can do nothing but endorse what has been established to respect the will that support the entire agreement.

How do you buy life insurance?

Although many companies allow the possibility of redemption of the life insurance policy, the detention of a part of the capital accumulated as a penalty. Going into the theoretical and practical detail of the ransom in question, this is none other than the liquidation of the amount paid through the premiums paid up to the moment in which it is inclined to stop everything. In this regard, it is necessary to deepen the wait peculiar of the policy paying particular attention above all to the general conditions, which are combined with the calculation to be made between the capital accumulated so far and what, in the end, will be effectively received.

Furthermore, even the operation of the life insurance in question, examining its characterizing aspects. In fact, the most common policies include the payment of a constant fee, one deadline established at the time of stipulation and a structured capital accumulation plan with precise time frames and reference deductibles in line with those of the market.

Furthermore, in these policies there are usually also compulsory payments for the first 3 years or for the first ones 5 years. This means, in a nutshell, that the capital accumulates but it is not possible to ask or demand any ransom. In addition to this, if you want to terminate the insurance contract before 3 years have elapsed from the day of stipulation, the sums paid will go to the full benefit of the insurance company.

How is the reimbursement sum of a life policy calculated?

The sum a reimbursement of a generic life policy can be preceded by a request for a quote to understand the convenience of the desired amount. In most cases, the penalty due to the redemption has a percentage value that must be calculated for the years missing from the natural expiry of the contract. If, for example, they are paid annually 1000 euro establishing that life insurance will last 15 years, when the redemption request is made in the fifth year, a penalty equal to 3% per annum may be incurred for the remaining 10 years. Therefore, the actual redemption that will be given to the beneficiary on duty will be equal to 3500 euros including, therefore, the penalty indicated above.

How do I apply for a life insurance purchase?

The request described so far usually requires the compilation of a modulo which is provided by the same insurance company that takes care of it. First of all, the generality (name, surname, date and place of birth and address of residence) explaining, then, the motivation in support of the request with a formula that underlines the express will of the same. In addition, the references regarding the policy underwritten must be indicated – such as the date of stipulation of the policy and the contract number. Finally, the way in which everything must be paid must be communicated, so if you opt for a bank transfer, you must submit your IBAN.


Source: RSS DiariodelWeb.it Economia by www.diariodelweb.it.

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