Prevention is one of the most important parts for any person and it applies in all aspects. From the economic part to the health. Following basic advice such as exercising and maintaining a balanced diet are enough to reduce the risk of multiple diseases. But it is also necessary to go a step further and think about the option of take out life insurance as a strategy against any type of catastrophe.
In Mexico, only one in four citizens between the ages of 18 and 70 has insurance, according to the National Survey of Financial Inclusion (ENIF). And within the population that has this type of financial product, 67%, equivalent to 13.5 million people, have life insurance.
Reasons why some people do not buy life insurance
The above figures reveal that despite the low penetration of this type of product in the country, The priority of people who purchase insurance is to financially protect their families in the event of death. However, some obstacles still persist, many of them associated with beliefs or perceptions of Mexicans, such as the following:
- They consider that the cost of contracting insurance is very high.
- They don’t trust insurance companies.
- They do not have money or work or their income is variable.
- They don’t know how these products work and they don’t know where to order them.
“The contrast is interesting. Insurance acquisition in Mexico is considerably low, especially when compared to levels in OECD countries. However, there are currently various options that can democratize access to these products for a larger sector of the population, with costs and services tailored to users,” says Sebastián Villareal, CEO of super.mx, insurtech platform that facilitates the quote and contracting of insurance completely online.
How to make a good decision?
It is important that before taking out life insurance, the person investigate the service and evaluate your needs in order to make the best decision. To support those interested in acquiring one, we share everything you need to know before making a decision.
1. What does life insurance cover? The main function of life insurance is to protect a person’s family in the event of a fatal event. However, some insurance allows you to recover part of the investment as savings, if the person is still alive at the end of the contract.
2. What are the ‘fine print’ of life insurance? In general, the ‘fine print’ of a contract has to do with cases such as suicide in the first years of a life insurance contract or when the contracting party omits information or some condition or existing habits when purchasing the product.
3. Is there a minimum age to take out life insurance? Life insurance in Mexico can be contracted from the age of 18. Likewise, the age limit is usually between 65 and 69 years of age, particularly due to time issues in order to request a refund.
4. What are the terms of life insurance? Currently there are different terms of life insurance. You can even apply for a year. Most terms are given for five years: 5, 10, 15 and 20 years. There are also lifetime options, which after a certain age begin to become more expensive in premiums.
5. You have to review the general conditions of the insurance. “The most important thing is that an insured person knows the conditions of his insurance with absolute clarity: calmly read the coverage and possible returns with premiums. In the same way, knowing that at all times he must have continuous advice to resolve any doubts, ”explains Villareal.
6. How is life insurance charged? The bureaucracy behind collecting life insurance can be excessive. For this reason, it is important that a contractor investigate options with expeditious and dynamic processes, so that a family does not have to endure greater obstacles in addition to mourning in the event of a death.
You must have an adequate list of documents to present and advice to have. In general, life insurance can be collected up to 5 years after the death of the contracting party.
7. How do you take out life insurance? People interested in hiring life insurance can directly approach traditional insurers to study which policy is best for them and which one fits their budgets.