When you want to take out insurance (life, car, asset, etc) first you will have to fill out a form called: application for Insurance (name can vary according to the company). This form is usually easy to fill and serves the insurance company to determine your medical information, personal and contact information, the type of policy you want, additional data and the capital which is to be assured.
Taking out Insurance:
When you want to take out insurance (life, car, asset, etc) first you will have to fill out a form called: application for Insurance (name can vary according to the company).
This form is usually easy to fill and serves the insurance company to determine your medical information, personal and contact information, the type of policy you want, additional data and the capital which is to be assured.
The Insurance contract is the document by which the insurer undertakes, in return for a premium, to indemnify the insured or its beneficiary, of an injury or harm caused by an uncertain event.
The main features of the insurance contract: is consensual, bilateral and random. We say it is consensual because it must have consent of both parties (insurer and insured); is bilateral since it creates reciprocal rights and obligations between insurer and insured, and is random because it refers to compensation for loss or damage caused by an event or an uncertain fact, it is not known whether to produce and otherwise – as death – no one knows when it will come to pass.
The elements of the insurance contract:
-Insurable interest
-Insurable risk
-The premium
-The insurer’s obligation to indemnify
Tips before sign an insurance policy:
– Must be honest when you answer because the insurer can refuse the policy if it discovers inconsistencies.
-When finished double check the form to search for unintentional mistakes because a mistake can result in a reduction of the insured sum.
-When you deliver the form, the insurer makes the risk assessment. If the insurer considers the person to be insured has a risk higher than normal of death, he may have to pay a higher premium. Each company has its own standards and ways to determine the risk, that’s why you should compare insurers to find the best insurance.
– You must pay a tax on insurance premiums (IPT), Find out about rates, exemptions, registering, record keeping and payments, that´s very important.
-The contract is to indemnify the insured against payment of a premium to the insurer, take into consideration that this compensation is variable as it is subject to the insured event occurs.
-You can talk with experts and professional advisors of insurance companies, or a broker.
-Try to calculate that the sum insured you going to hire, is as close as possible to one monthly household expenditure during 3-5 years.
– The insurance contract is not always considered as a contract of adhesion since it is possible to it be consensual, this will depend on the will of the parties, the policy is issued, the risk covered, etc.
