Life
Frequently asked questions about life insurance.

What is a life insurance?
This is an insurance which covers as its main risk death or survival (or both) of one or more insured persons. Furthermore, it may include as additional coverage the risk of disability, accident and unemployment.

In the life insurance, that covers the risk of death of the insured person (insurance in case of death); the insurer shall pay the beneficiary the agreed sum if the insured person dies while the agreement is in force.

In the life insurance, that covers the risk of survival of the insured person (insurance in case of life), the insurer shall pay the beneficiary the agreed sum if the insured person is alive at the end of the agreement. In general, this type of insurance is used as a means of saving. In this case, the beneficiary can be the insured person him/herself.

There are other combined solutions that cover both cases, that is, the insurer pays in case the insured person dies or stays alive; usually the sum involved is different in each case.

What information should there be in the life insurance policy?
Life insurance policies should contain the terms and conditions agreed between the parties, namely any applicable general, special and specific condition plus:

• The general information required for every insurance policy;
• How premiums shall be paid to the insurer (conditions, term and frequency);
• If there is or not a right to profit sharing and, if yes, how it is determined and settled;
• The period in which the agreement can be reinstated on the same conditions after having expired;
• The conditions that allow keeping the agreement in case the insured dies.

Which information should the insurer make available to the policyholder before issuing a life insurance policy?
Before issuing a life insurance policy, the insurer should make available:

• General information that must be reported prior to signing any insurance agreement;
• The definition of each cover;
• Premiums relating to each cover;
• How the profit sharing (if any) is determined and paid;
• The guaranteed minimum income (guaranteed minimum interest rate and relevant duration) (if any);
• Redemption, reduction values and penalties;
• Charges and when they are to be collected;
• The tax system (for instance, any existing tax benefits);
• The possibility of accessing medical data from checkups made.

If the agreement features a variable life insurance policy, it should mention the following as well:

• Benchmark values for calculating the sum;
• The number of shares;
• The nature of representative assets (stocks, bonds, etc.).