What is life insurance and how does it work in Puerto Rico?

In countries like Mexico, life insurance is the most in demand with 13.5 million people. And more and more people are interested in taking out an insurance policy that protects their family's future.

In Puerto Rico, the numbers are not similar, but an increase in interest in purchasing life insurance has been observed.

However, before purchasing a life insurance policy in Puerto Rico, or anywhere, you should inform yourself. What is life insurance and what can it cover? How much does life insurance cost in Puerto Rico?

These are questions that you should ask yourself before taking the step and today we are going to answer them for you. Take note!

What is life insurance in Puerto Rico?

Life insurance is a product that provides financial protection in the event of the death or disability of the insured.

That is, if you are the person who supports your home and you purchase a life insurance policy, you will be able to protect your family's income in case you are missing due to death or disability.

To better understand life insurance in Puerto Rico, let's review three fundamental concepts:

• Insurance company — It is the company to which you must pay the premium and when it is activated, it must compensate your family. In this case the beneficiaries.
• Insured — This is the person who pays for and takes out the life insurance policy, in this case let's say it's you.
• Beneficiary – This is the person who may receive compensation when the life insurance must be foreclosed. It can be your partner, children or parents, you decide.

So, life insurance is a contract between an insurance company and an insured. It is activated with the payment of a previously agreed upon premium that guarantees that the insurance beneficiary will receive compensation in the event that the insured dies or becomes permanently disabled.

What does life insurance cover in Puerto Rico?

The first thing life insurance covers is the death of the insured person. Whether due to an accident or natural causes. To which we must add permanent disability due to the same causes.

On the other hand, you must keep in mind that there are cases that are not covered by life insurance. They are known as exclusions, such as suicide, for example. You must discuss all this with the insurer.

Likewise, you can also choose additional coverage for your life insurance and obtain greater protection.

One of them may be coverage for serious illness.

This coverage can be negotiated and included in your life insurance, so you can have more risks covered. For example, a disease such as cancer, although it is true that this policy is not common in elderly people. Everything will depend on the risk assessment made by the insurance.

What does life insurance in Puerto Rico not cover?

Insurers exclude deaths caused by playing high-risk sports from their life insurance policies. Even some professions, such as aviators, are also excluded.

Therefore, if you belong to the group of exclusions you will have to look for insurance that can cover them. Taking into account that the cost of the premium will be higher.

Furthermore, as we already mentioned, suicide is not covered by life insurance either. Above all, in the first years, this prevents the insured from taking out a life policy thinking about committing suicide. It is a way for insurance companies to cover themselves.

How much does life insurance cost?

The cost of a life insurance premium will depend on your circumstances. Aspects such as your age and risk factors such as profession or history of illnesses are taken into account.

Therefore, a young person will have a lower premium compared to an elderly person. The same applies if the insurer has information that you are a smoker or have dangerous hobbies such as skydiving, for example.

The cost also varies depending on the additional coverages you choose or not to include in your life insurance policy.

That all sounds like a lot of research and paperwork, however, at CUVRO you can choose your life insurance in Puerto Rico in a matter of minutes. We invite you to learn more about our platform at www.getcuvro.com.