What is family life insurance?
Family life insurance is a life insurance that extends coverage to more family members, generally parents and their children under 14 years of age. It pays the benefits of the death of each family member included in coverage, but policy generally continues when the bonuses are paid in time and at least one of the covered family members remains alive. Parents in the family group are generally the subject of the process of subscription of the insurance company; This means that they will be asked to complete a medical history and, if necessary, pass a medical examination. However, children are generally not subject to the subscription process. With regard to the premium payment, usually regularly, the insurance company promises that after the death of an individual or any group member, he will pay a specific amount of money. If prěmium payments are current, policy is considered validity and if the policyholder dies, the insurance company will pay the advantage. The recipient is usually named the owner of politics; In the case of family policy, own policy.
When a family life insurance is written, a single application form is filled in. Medical issues are asked on adults as if they were buying individual insurance. Some family life insurance applications may ask several medical questions about children, but in most cases everything is required, the name, date of birth and gender. Some insurance contracts are automatically covered by newborns with provisions that the insurance company will be provided details of the new arrival in a certain time frame, usually 30 days. If there are no subsequent medical questions, policy is usually issued within one week or two applications of the cation.
The most visible advantage of family policy is the comfort to have one policy and the only bonus. The insurance company also benefits from comfort and many of them offer premium discounts on the purchase of family life insurance. In addition to comfort and premium discounts associated with these policies is the automaticThe newborn also covered with comfort, although the low rate of mortality on newborns or infants in most developed countries makes this insurance advantage, which is rarely paid.
The question of insurance of children's lives is sometimes controversial. Traditionally, life insurance provides protection against income loss, so it is always recommended that the main breadwinner of the family bears the largest amount of life insurance. The amounts of coverage for children in family life insurance are often determined in a small amount, such as $ 5,000 (USD) or $ 10,000. These amounts are considered sufficient to pay the costs of the funeral and the funeral for the child and the coverage of these amounts is not recommended.
Child coverage generally ends when they reach a certain age at their early 20 years, determined by the insurance company. At this point, it is allowed to "transfer" your coverage to regular individual life insurance. This transferability usually involves the opportunity to buy additional insurance without having toto prove insure. This possibility is extremely valuable in performing young adults whose medical situations, hobbies or professions put them into groups considered as a "high risk" by insurance companies.