WHAT DETERMINES THE PREMIUM FUNERAL INSURANCE?

WHAT DETERMINES THE PREMIUM FUNERAL INSURANCE?

One of the reasons why the insurance of deaths are one of the most popular in Spain insurance is because the premium that must be paid by the policy is not too high. However, as you might guess, this premium is not equal for everyone, and depends on many factors, being the more decisive the age of the insured and the rising prices of funeral services.

This means that, the greater the person who hires the funeral insurance, higher will be the premium, since older, higher risk of death. In relation to the costs of funeral services, insurance companies provide coverage to meet the costs of the burial according to what has been hired. In this sense, must be taken into account if the coverage offered, for example, free choice of funeral and cemetery, as well as another set of services that can be much expensive insurance.

TYPES OF PREMIUM IN FUNERAL INSURANCE

There are five types of premiums in the insurance market deaths, which depend on several factors. At this point should be emphasizing the fact that the insured can see that increasingly pays more. But the increase depends on what kind of bonus you choose. We are going to see it.

• PREMIUM LEVEL

The insurance premium level, the amount of the premium is stable in time. However, as time passes it can vary. The ascent can be justified for several reasons. One of them is the increase in the insurance, that time as must be updated so that it is not outdated. Another cause is due to the rates, which will grow over time and with the increase in the insurance.

The advantage of the level premium is that you distribute what you will pay for premium more evenly, so that, when you are over, the premiums are lower than that with the natural raw material.

As drawback, however, with this premium you pay much more than what corresponds to your risk when you are young, and if you change, you lose the rate you set when entering the company, thus losing what they have paid more (antiquity).

• PREMIUM NATURAL

Natural premium is a renewable annual premium. Unlike the level premium, the premium occurring increases with the time and cost of the service is more expensive. This is due to the risk and cost factors are taken into account for that year. As he passed time, increased risk and costs.

As advantages, is that with this premium you pay according to the real risk due to age, so, when you're young, you pay very little, and not start to notice a significant increase to approximately 60 years. However, as of this moment, premium rises considerably, although the age of 65-70 natural rates tend to equate to the level.

Despite everything, this mode has the advantage that you have complete freedom to change insurance and even company, peusto that this type of raw material does not accumulate seniority.

• PREMIUM MIXED

This type of raw material a combination between the level premium and the premium natural, so that during the first years premium has several rises until the insured meets an age determined (approximately 70). To file then, the premium of stabilizes and increases are minimal.

• PREMIUM SEMI

The semi mode is similar to the joint. It is also a combination between the level and mode of natural recruitment. The difference is the application of updates in the period in which works as a natural.

Thus, at an early age, the premium is reduced and increases with age until you reach the stipulated by the company from which the premium is level and becomes constant. Thus, in the first part of the contract, it would amount to the natural form.

• PREMIUM ONLY

The single premium is a type of contracting consists of obtaining the funeral insurance coverage of life with a single payment. It is especially aimed at people older than 65 or 70 years, for those who do not usually possible ordering another type of funeral insurance because of their age and, therefore, risk.