Life insurances

The fundamental characteristic of life insurance is that the payment of the agreed amount and n the contract depends on the death or survival of the insured.

In this type of insurance, it is desirable to define the concept of:

  • Insured whose life depends on the payment of the capital.
  • Policyholder who is who hires and pays the insurance premium (can match the insured).
  • Beneficiary is the person who will receive the capital paid by the insurer.
  • Life insurances

The most widely accepted classification, depending on the purpose of life insurance is as follows:

Non-life

It is also usual to denominate insurance risk. If the insured dies before the end of the contract to the beneficiaries designated in the policy payment of principal or contracted income is guaranteed. If the insured comes alive when the contract expires, it is terminated without any compensation by the insurance company.

Survival Insurance

It is also usual to denominate savings insurance. If the insured lives at the end of the contract, the beneficiaries are guaranteed the payment of principal or contracted income.

In this type of insurance it is particularly relevant tax treatment will depend on the laws of each country.

Within this modality should highlight the Unit Link, Insured Pension Plans (PPA) and Individual Systematic Savings Plans. You can learn more about this topic here.

Mixed insurance

The insurance company guarantees payment of a lump sum to the beneficiaries at death of the insured, or the expiration of the insurance.

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