Life insurance is one that is responsible for covering the risk of death, survival, and/or a certain degree of invalidity or disability of the insured. It is, therefore, insurance that covers those risks that affect the existence, health, or integrity of people.

Life insurance is a very widespread product since, in exchange for a small monthly fee, it provides significant economic support for its beneficiaries in the event of the insured event.

What is life insurance?

It is insurance that works through the payment of a certain premium that guarantees that the beneficiaries will receive a specific capital in the event that the event covered by said policy occurs. This could be: death or disability of the insured (risk insurance) or survival of the insured at the end of the time stipulated in the policy (savings insurance).

The main characteristic of life insurance is, therefore, that the collection by the beneficiaries of the agreed amount is subject to the death, disability, or survival of the insured.

The amount of the premium that you must pay in the face amount of life insurance will depend on the associated risk and the amount you want your beneficiaries to receive. This compensation may be received through a single payment or through rent, depending on what you stipulate when signing the contract. In any case, it is advisable to define the personal elements of this type of insurance:

  • Insured. It is the person on whose life the payment of the principal depends.
  • Insurance policyholder. He is the one who contracts the insurance and pays the premium. It may or may not coincide with the insured.
  • Beneficiary. He is the one who receives the capital fixed in the policy.

Life insurance and a health questionnaire

Since the conditions of life insurance are linked to the associated risk, you must fill out a health questionnaire that contains those circumstances that could influence the risk assessment by the insurer: age, diseases suffered by the insured, surgical interventions, and so on. It is important that you truthfully answer this questionnaire since the concealment of data could prevent your beneficiaries from obtaining the agreed compensation.

Until what age does life insurance last?

The usual thing is that the validity of life insurance ends when the insured turns 65 or 70 years old. This is the case, at least in the most common life insurance, called temporary. Now, you can also take out whole life insurance, which guarantees the capital you have contracted for life. This type of insurance is called face amount life insurance, and in them, the premium tends to increase as the age of the insured also increases.

On the other hand, life insurance that covers death cannot be made to those under 14 years of age, as it is prohibited by the Insurance Contract Law. Between the ages of 14 and 18, this type of insurance can be contracted, provided that the minor himself is not listed as the policyholder and that his parents or guardians grant their consent.

What happens if the life insurance beneficiary dies?

If the beneficiary of life insurance dies before the insured, the policyholder may designate another or other beneficiaries. If he had not done so, compensation could be claimed by the heirs of said insured.

However, in the event that the insured and the beneficiary died at the same time, it would be the heirs of the latter who would be entitled to compensation.