Death insurance and life insurance are not the same thing. Both come into play with death, but in very different ways.
How can we protect ourselves in the event of death? There are two main types of insurance, death insurance and life insurance. They are different, yet complementary. Both policies cover the death of the policyholder and protect the family's financial resources. However, there are differences between the two coverages
Burial: covers the costs of the funeral.
The main objective of funeral insurance is to provide all benefits related to the death of a person. In other words, it takes care of the formalities associated with a funeral, such as the medical death certificate, the transfer or repatriation of the body, the coffin, the funeral parlour, the hearse and escort vehicle, psychological care for the relatives, etc. It is therefore an insurance policy designed to ensure that your loved ones do not have to go through headaches in the event of your death on top of the difficult time they are already going through.
Life insurance: providing financial security for your family.
Life insurance, however, is not about the funeral itself, but about mitigating the financial consequences of no longer being with your loved ones. It is an insurance policy that allows you to provide financial security for your family in the event of your death. With a life insurance policy, the people you choose will receive a pre-determined amount of money in the event of your death. This money can be used to provide them with a cushion to fall back on in years to come or to pay off debts, such as a mortgage. In addition to death, life insurance can also cover other circumstances. In particular, it can come into play if the insured person has an accident or illness that results in incapacity to work. If the insured person becomes permanently or absolutely unable to work, he or she can also receive the agreed compensation. The insurance money thus helps the family to cope with the difficulties that arise.
However, there is also another type of life insurance, namely endowment insurance. The aim of the latter insurance is to be able to save in order to have money available for retirement or for new projects when the time comes. It should not be forgotten, however, that both whole life and endowment insurance can have a broader scope of coverage. For example, both policies usually include other exclusive guarantees (optional in some cases), such as travel assistance or the preparation of an online will in the case of burial insurance, or coverage related to the insured's absolute or permanent disability in life insurance.
How do you know if a family member had life insurance??
If you have unfortunately recently suffered the loss of a family member or friend, you may be listed as a beneficiary of an insurance policy that had death cover (e.g. a life insurance policy). If this is the case, you are the person to whom the insurer must pay the compensation. And how can you find this out? All you have to do is request the information from the register of insurance contracts in the event of death, which depends on the Ministry of Justice. This register allows for an online query on the Ministry of Justice's website or a personal visit. The procedure involves several steps: First, the interested party must obtain Form 790 (either on the Ministry of Justice's website or at one of its regional offices), fill it out and pay the appropriate fee.
Secondly, go to the Registro General de Actos de Última Voluntad (General Registry of Last Wills) or to a Gerencia Territorial del Ministerio de Justicia, with the literal death certificate of the person from whom you wish to obtain the certificate (you can only do this 15 working days after the date of death). Within a maximum of 7 days, the office will issue a certificate stating which contracts are in force and with which bodies they have been signed. These certificates will be collected in the same way they were requested (in person or by post). Once you have the certificate, all you have to do is go to the insurance company and ask if you are the beneficiary. If you are, you can automatically collect the compensation, which in Spain averages 34.500,- euros.
How much does a funeral cost in Spain?
The funeral of a person costs on average around 3.500,- euros in Spain, according to the Organisation of Consumers (OCU). However, it can cost twice as much, as it varies depending on the location and everything you commission. In Madrid, a minimum burial or cremation costs around 1.900,- euros, but a full burial can cost up to 7.000,- euros.
20 minutos - 28 January 2021
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