Funeral assistance or funeral assistance

Along with death coverage, companies generally offer funeral aid and funeral assistance. The first guarantees the reimbursement of expenses related to the funeral. 

Another option is to opt for funeral assistance , in which there is no reimbursement or free choice as to the service provider, that is, the services are performed by companies indicated by the insurer.

Serious diseases

Coverage is indicated for people who are more likely to develop a serious illness, such as those with a family history of certain illnesses.

Hospital admission due to an accident or surgical event

Life insurance may also cover accidents that require hospitalization or surgery.

credit life insurance

Another addition that can be included in the policy is the discharge of a debt in the event of the death of the insured. This coverage configures credit life insurance and ensures that debts do not affect the deceased’s assets.

Per diem for temporary disability

If the insured person needs to stay away from work, this coverage allows for protection for those who depend on this income not to suffer losses during the period of removal.

What types of life insurance exist?

In addition to different coverages, there are also different types of life insurance. They meet diverse needs and serve for various contexts. Firstly, it is worth noting that there are two large groups of insurance of this type: individual and collective .

The first — and best known — is an agreement negotiated directly between the insured (only one) and the insurance company. This allows the contract conditions to be defined individually, considering the characteristics of that single person.

Collective life insurance, on the other hand, is valid for a group of people and the conditions are negotiated between the contractor and the company, according to the characteristics of the collective. In this case, it is considered a global risk that serves all policyholders and not just a single person.

Want to know more about these and other types of life insurance? Check it out below.

individual life insurance

This is the most traditional life insurance in Brazil, in which the insured, who is covered by the policy, is a single person. This modality is usually hired by the insured person to guarantee financial protection for his family, in case a fatality happens. 

That way, the conditions can be customized to meet that person’s specific needs. Thus, if she has an accident, for example, the beneficiaries of the policy will be able to activate the insurance and receive the due compensation.

family life insurance

Instead of being contracted for a single insured person, the policy covers an entire family, that is, it extends to the spouse, children and other family members of the policy holder. However, despite insuring more than one person, it works very similarly to individual insurance.

Conditions are negotiated according to the characteristics and needs of family members. The possible coverages are very diversified and some insurers offer, for example, the possibility of the family participating in monthly drawings carried out by the Federal Lottery to receive extra resources.

group life insurance

It is a modality that can be contracted by companies or other organizations to cover the risk of a group of policyholders linked together by a bond or common interest.

This is the type of insurance most used by entrepreneurs who offer life insurance to their employees and interns. The policy guarantees compensation to the insured person or his/her beneficiaries, in case the employee has an accident, discovers a serious illness or dies.

In group life insurance, there is one more party involved in taking out the policy: the policyholder . It is the legal entity that contracts the insurance and negotiates the conditions with the insurer. It is he who is responsible for guaranteeing the payment of the premium and requesting renewal, cancellation or modifications to the contract.

redeemable life insurance

In this case, we are dealing with a policy that has the same protections as the traditional one, but with one difference: the holder chooses a period for which he will pay for the insurance and, after that period, he will be able to collect the amount paid over the years.

This means that it will not be necessary for a claim to occur for him to have access to the money, as an agreed percentage of the amount paid is “redeemable” – hence the name of the modality. Thus, if the claim does not occur within a certain period or if the insured person simply does not need the insurance anymore, he can redeem part of the amount he invested.

In that case, life insurance becomes a type of investment. However, it is good to remember that, of course, the longer the contribution time, the greater the percentage of the amount available for redemption.

What are the benefits of taking out life insurance?

The benefits of having life insurance are numerous. The highlight, of course, goes to the fact that this type of policy provides economic and financial protection for the insured and their loved ones in a difficult situation — an accident, illness or death. 

This is the main advantage for the insured party. However, if we look at group life insurance, we can also talk about the importance for the company of offering this benefit to its employees.

For this reason, below, we will discuss the advantages of life insurance considering these two approaches.