Insurance

Understand the differences between travel insurance and card insurance

Published

2 years ago

September 10, 2022

To plan a trip, you need to correctly organize all the details, from the suitcase to the itinerary, so that nothing goes wrong. After all, if there is a time when stress is unwanted, this would be a good example.

Traveling is synonymous with leisure and fun, but responsibilities should not be ignored. Therefore, all preparation must be handled carefully and safely.

It was with this in mind that we decided to create this post. In it, we will address a very important subject when it comes to travel: insurance. In addition to other issues, we will point out the differences between travel insurance and credit card insurance.

Interested and want to stay on top of everything? So, keep reading!

What is travel insurance?

Generally, this type of insurance offers compensation in the event of events that expose travelers to some risk. And, with the constant evolution of the market, insurers are increasingly seeking personalized service — according to the profile of their customers and the demands they make.

As mentioned, the continuous development of the segment has favored the creation of specific coverages that seek to meet the individual needs of each consumer. For this reason, it is worth consulting the insurance available and never failing to hire them when necessary.

Nowadays, the contractual conditions are broad and are able to offer many possibilities of protection to the contractors. The prices are also interesting and affordable — varying according to the type of contract and the number of days of the trip.

In this way, it is important to remember that, even when everything is planned in detail, it is always good to be prepared: if unforeseen events happen, it is better to err on the side of excess rather than lack of prudence.

What are the basic coverages of this service?

Maybe that’s the question you’re asking right now. After all, it is quite natural that you want to know why it is so important to acquire insurance guarantees.

In this topic, we will identify the main coverages provided for in the contractual clauses. Are they:

medical, hospital and dental expenses on national or international travel
compensation for total or impartial disability caused by a travel accident;
compensation for death in travel caused by natural or accidental causes;
payment of medical transfer expenses;
coverage of expenses in cases of medical return;

It is worth noting that in international travel, coverage related to medical, hospital and dental care is required to cover expenses both in situations of personal accidents and in situations of acute illness – respecting the contracted amount limit.

Another important point concerns assistance in the case of diseases that are already diagnosed, as it is common for insurers to define urgent and emergency occasions in order to avoid further inconvenience.

Pre-existing comorbidities are typically considered a risk that is not covered by coverage. However, in order to formalize this information, the insurer must require a health certificate from the insured, otherwise there will be nothing to dispute.

After all, what is credit card insurance?

Well, initially, let’s clarify that the travel insurance and credit card insurance that we are referring to cover the same type of service: hiring support and assistance for risky travel situations.

However, the insurance offered by credit cards may be more limited and can only be purchased when tickets are purchased on the card. Meanwhile, insurance brokers and agencies offer the possibility of contracting a broader and more adequate insurance to the client’s interests.

There are some card companies that already have these plans in their services. Examples of this are Master Platinum or Black cards and also Visa Infinite or Platinum. However, as already mentioned, the tickets must be purchased there and the traveler cannot forget to confirm if the benefit is really available and what are the values, limits of each coverage. Read the contract!

What are the differences between travel insurance and card insurance?

Basically, the main difference will be the limitations between the scope of assistance services of both modalities. In any case, it is important to compare and define which one will be the most suitable for your interest.

This analysis will allow you to decide which is more interesting for you: a contract made directly with a broker or the contract on the card. In the second option, the values established as limits may not be sufficient for all needs. For this reason, carry out a careful search.

Furthermore, the coverage provided by the cards offers a maximum travel time of 30 or 60 days. Therefore, for those who intend to carry out a longer script, this may not be the best option. In such cases, more personalized plans are suggested — an advantage that only brokers have mastered.

What are the benefits of travel insurance from a broker?

After evaluating the conditions of insurance offered by credit cards, it’s time to learn about the benefits of a contract carried out by a specialized agency or brokerage.

This option is often the most recommended by specialists, as, in addition to providing basic advice, it can go further and offer extra resources to those who are going to travel and want to feel safe — whatever their destination.

In order to guarantee and preserve the contractor’s total practicality and protection, insurance companies not only provide essential packages, but also additional coverage, such as compensation for lost or damaged luggage, compensation for funeral expenses, assistance for cancellation of trip and also assistance when there is a need for an early return.

However, there are more additional choices and varying coverage limits. The range of options has plans defined by the profile of the traveler and also by the destination of the tour. They can vary, depending on the plan chosen, from USD 15,000 to USD 200,000

What are the assistance alternatives offered by travel insurance?

Of course, although there are many coverage alternatives , they will not always be necessary and mandatory. Therefore, it is important that you know all the possibilities so that you can define which ones meet your demands.

For this reason, here, we will identify which coverages are available. In the same way, it is also possible to consult an insurance broker or travel agency to assist you in this task. See below:

payment of bail or legal expenses for cases of arrest or detention;
advice for transmitting urgent messages;
assistance in returning and locating luggage;
payment of legal fees when the traveler requests legal assistance;
reimbursement for room and board costs when there are delays of more than 18 hours;
offer of airfare (round trip) for an adult who will accompany a child under 14 years of age due to an accident or unexpected illness;
providing an air ticket to the insured who is unable to continue his journey;
reimbursement of money, in case of interruption of trip, motivated by personal accident, illness or death of family member;
refund of deposit when the contracting party cannot start the trip due to death, illness or accident of family members or dependents — informed within 48 hours to the insurer;
payment for the transfer of the body which includes release, passage and embalming;
full coverage of the contracting party’s medical repatriation to a hospital in their place of residence;
payment of the insured person’s transfer to a hospital, after first aid treatment;
compensation for damage to luggage through a supporting report;
compensation for loss, theft, robbery and destruction of luggage that is under the responsibility of the carrier and that must also be proven. In this case, the amount paid will refer to the weight and not to the contents of the bag;
payment of accommodation for up to 10 days for the insured’s companion in cases of hospital removal – notify the insurance company;
compensation for the purchase of an air ticket in the country of origin for the person indicated by the insured, in cases of prolonged hospitalization monitoring — prior communication is required;
reimbursement for hotel accommodation of up to 10 days for an extension of stay — do not forget to present the medical certificate;
payment of medication expenses made after presentation of a medical prescription;
payment for emergency dental treatment caused by illness or accidents;
payment of physiotherapy recommended for the treatment of injuries caused during the trip and indicated by the doctor who treated the insured;
reimbursement of health expenses — without considering pre-existing illnesses.

Are there differences between national and international travel insurance?

No, however, in the case of domestic trips, the minimum distance required for contracting is 100 kilometers between the traveler’s origin and destination.

However, for some international trips, it is mandatory. 27 European countries require tourists to have insurance coverage equivalent to 30 thousand euros.

Outside this axis, it is worth mentioning the United Arab Emirates, Cuba, Turkey and Qatar as countries that also require assistance.

To help with your schedule, we’ve listed the nations on the European continent that require insurance. Are they:

Austria
Germany
Denmark
Belgium
Spain
Slovenia
Slovakia
Estonia
France
Finland
Greece
Hungary
Netherlands
Ireland
Iceland
Italy
Luxembourg
Lithuania
latvia
Malta
Norway
Portugal
Poland
Romania
Czech republic
UK
Switzerland
Sweden

Who can hire the service?

It is common for travel insurance contracts to be based on the same conditions as life insurance. As such, many agencies set age limits that range their permits from 65 to 70 years old.

However, there are personalized companies that already offer services with special plans that provide assistance to people over the aforementioned limits.

For children under 14, the limitation occurs only in cases of funeral expenses or accidents, and compensation only occurs upon presentation of documents proving the expenses.

Are there risks that are not covered by travel insurance?

This is a very important issue that should have the traveler’s attention, as this will ensure that unwanted surprises cause more problems.

The occasions not foreseen in the contractual clauses are called excluded risks. Thus, when closing a contract, be aware of such regulations, thus avoiding financial losses.

The main excluded risks are as follows:

services requested by the contractor without authorization from the insurer;
compensation for damages, loss or violation of objects that are inside the luggage;
treatment in cases of epidemics, endemics or pandemics;
medical care coverage if the insured has practiced a high-risk activity without skill;
payment of expenses with physiotherapy, dental or medical treatments that are considered routine;
assistance for psychiatric treatments;
coverage for accidents caused by handling nuclear material or similar;
assistance for involvement in wars, riots or rebellions;
when injuries or deaths result from crime or misbehavior;
when illnesses or accidents are caused by the use of drugs or alcohol;
coverage for damages arising from malpractice, recklessness, negligence or irresponsibility while driving a car;
in cases of events related to natural phenomena, such as earthquakes, volcanoes, floods, hurricanes, tidal waves, among others;

Insurance

Insurance risk analysis: how does it work?

Published

2 years ago

September 10, 2022

Sunny Wars

Risk analysis criteria in insurance have become increasingly sophisticated and precise. This assessment is used by the insurer to classify the customer’s situation in relation to the risks to which he is exposed, how his habits interfere with these risks and how much he is able to pay in an insurance policy.

Usually, the client is evaluated with a simple questionnaire model, answering questions such as age, marital status, health condition, occupation, among others. The insurer then submits this to statistical models and prices the insurance according to what it will insure and your lifestyle. But how does each of this information influence the price of insurance? Read on to find out.

What raises the price of insurance: being young or being old?

Age can make insurance more expensive or cheaper, depending on the risk being analyzed. For example, for car insurance, the driver’s maturity counts, and this is usually measured by age or driving time.

In relation to life insurance, old age ends up becoming more expensive, since the risks of diseases and infections end up being greater than in youth.

The age criterion can often be offset by other parameters related to lifestyle. A young customer looking for life insurance may have a policy that is more expensive than an older customer if the youth participates in higher risk activities and has unhealthy habits.

What is considered risk for my vehicle insurance?

The make and model of the car are taken into account for the cost and frequency of maintenance. In addition, the insurance is more expensive if the type is targeted for theft.

Older cars have a very high insurance value compared to their market price. This is due to the lower availability of spare parts, greater need for maintenance and less guarantee of the vehicle’s state of conservation. However, when comparing the face value of insurance between new and old cars, the difference is not that great. Therefore, each risk must be considered separately.

Depending on the risk coverage that is made for the vehicle , the insurance can become more expensive or cheaper. A plan that covers theft, fire, collision, and third-party liability is, of course, more expensive than a plan that only covers one of these risks.

Insurance risk analysis: Do insurers consider my lifestyle?

In the car insurance market, the frequency of use and the general condition of the car are parameters considered to assess the customer’s lifestyle. Cars used very frequently will be rated at higher risk and therefore will be more expensive.

If the customer wants property insurance, involving coverage against theft, it will be cheaper if it is observed that the property is being well guarded and that the customer is concerned about security.

Even an agricultural producer who needs coverage for damage to rural production machines can be evaluated for his care with the equipment.

Why does my marital status affect the amount of insurance?

Marital status is often used as a lifestyle criterion. The classification of the behavior of married and single people comes from statistical bases that reflect these patterns.

Single people typically go out more at night, are more socially active, and are therefore considered to be a higher risk group than couples.

A couple with children usually has very different assessments from single people without children, since the child greatly influences the lifestyle of a couple. Therefore, insurance that relates to lifestyle risks is cheaper when the client has children.

Does the place where I live affect only my property insurance?

The neighborhood where the client lives can influence the risk of accidents that happen close to home. If the accident rates are high in the region, the insurance company may assess that its client is at risk every time he is leaving or arriving home.

Generally, the population density of the region is used as a parameter to assess whether the risk of car accidents is large or small. Thus, a busier neighborhood will have more expensive car insurance.

The safety of the neighborhood is also taken into account not only for the property, but also for the protection of the car, insured assets inside the house and the client’s own life. Taking out insurance for dangerous places is generally more expensive.

Virtually any information about a customer’s lifestyle can be used in evaluating a policy. Insurance risk analysis uses statistical validations as a price and feasibility parameter whenever a customer requests the service and, therefore, the insurance value is usually very precise and calculated.

Insurance

Find out if life insurance enters the inventory!

Published

2 years ago

September 10, 2022

Sunny Wars

A very common question from those who are researching insurance is whether Life Insurance enters the inventory. Well, the answer to it is quite simple: no, life insurance doesn’t go into the inventory. In fact, there are many differences between this type of insurance and the sharing of an inheritance. For example, in the case of inheritance, only legal heirs can benefit from the assets left by the deceased, while in Life Insurance there is no such requirement.

What is inventory?

Inventory is the process that takes place after the death of a person, and can occur judicially or extrajudicially and with a maximum period of 60 days for its beginning. Its purpose is to share the assets and debts of the deceased, ensuring a fair succession for each legal heir. This process can be requested by any interested person, whether spouse, children, or even creditors.

How it works?

From the moment the inventory process begins, in a judicial inventory, the first thing to be done is the appointment of an administrator who will be the person responsible for taking care of the assets in question and ensuring the progress of the action until the end. .

If the heirs are all of age, the sharing of assets will take place more quickly, as long as everyone is in agreement. If there are minors, it will be necessary to wait a little longer until the judge’s approval.

The division of assets can follow the deceased person’s will (if he left one) or what is stipulated by law. It is expected that the spouse will receive 50% of the inheritance, while the children will share the other half according to the hereditary order.

If someone feels wronged, it is possible to take legal action to recover some benefit. This can be useful in the case of children who were not recognized in life or who are the result of an extramarital relationship.

What is Life Insurance?

As with other types, Life Insurance guarantees protection against situations that may result in the death of the insured, providing an indemnity to the beneficiaries, stipulated in the contract, if this fatality occurs.

Its operation is very similar to that of other modalities, in which the contractor includes the coverage he wants, pays the insurance premium monthly or annually and is entitled to coverage in cases where the policy allows.

It is worth mentioning that the insurance holders do not benefit from the indemnity, only the listed beneficiaries. In addition, there is the possibility of flexibilizing the way in which compensation will be paid and even including funeral assistance in some cases.

Who is entitled to Life Insurance?

Any person of interest to the contractor can be a Life Insurance beneficiary. In other words, it is entirely possible to include friends, neighbors, relatives and even spouse and legal heirs to fill this position.

The only detail to pay attention to is that beneficiaries can only receive the appropriate compensation if they are of legal age, that is, at least 18 years old. Otherwise, the money will be withheld until the beneficiary person reaches the age of majority.

Does life insurance go into the inventory?

Life Insurance is not included in the inventory because it is not an asset accumulated during the life of the holder. In other words, as this money was never part of the contractor’s real estate, it cannot be counted as equity.

In addition, as this is an indemnity paid to beneficiaries after the death of the holder, the amounts of money will be made available within a period of up to 30 days after the request is made.

Just to be clear whether life insurance goes into the probate or not, the answer is no. Keep this in mind.

After all, what is the advantage of Life Insurance?

So far it has been evident that Life Insurance is a great tool used to protect the people we love, regardless of the existing blood relationship. In addition, there are other benefits that this type of insurance offers. Check it out below!

Possibility of indicating any person : unlike the inheritance, it is totally possible to include any person in the list of beneficiaries, without major restrictions;
no need to take inventory to access compensation : unlike sharing the assets of an inheritance, the amount intended for beneficiaries is available within a maximum period of 30 days — which reduces the waiting time;
there are no state taxes : unlike inheritance, it is not necessary to pay ITCMD to have access to financial resources;
there is no withholding by the court : since the beneficiaries will receive money that was never part of the deceased’s estate while he was alive, the court cannot freeze the financial resources to pay off possible debts left by the contractor.

How to get Life Insurance?

Once you understand that it is very advantageous to have a Life Insurance to protect your family and friends, it remains to know what to do to have more details about this type of insurance.

The first thing to do is to find out a little more about how this product works, trying to understand conditions, fees, premium amounts to be paid , duration of coverage (when applicable), among other things.

This whole process can be streamlined if you have someone to guide you and answer your questions. Therefore, in these cases, the most recommended thing is to talk to a well-trained professional to guide you and show you the best path to take, by clarifying fundamental legal issues of both the inheritance and Life Insurance process.

Insurance

Home insurance claim or assistance? What’s the difference?

Published

2 years ago

September 10, 2022

Sunny Wars

Did you know that there is a difference between a home insurance claim and assistance? While the first works as a financial protection in case of risks or incidents in the house, the second represents a package of services focused on solving domestic emergencies.

When an insurance contract is signed, the family has extra security for the residence and household budget. In the event of a claim, the contractual relationship provides for the right to financial compensation for the insured, under the terms of the contract.

In this article, you will understand better about the loss in home insurance and the differences in relation to assistance. So, read on to make the best choice!

What is home insurance?

Home insurance aims to offer complete protection for the insured’s property. What does that mean? That the contract will cover both structural problems and possible difficulties related to the interior of the house.

It is with residential insurance that the contractor has coverage against financial losses in the event of a claim — which is any event from which the material property indicated by the policy suffers damage. Thus, they are able to receive compensation for unexpected expenses, unlike the assistance proposal, as we will see later.

Now, anyone who thinks that taking out insurance compromises the family budget is wrong. The cost is around 1% of the value of rebuilding the property. In this sense, it represents one of the types of insurance that can best be shaped according to the policyholder’s objective and needs.

For this, there are basic and additional coverage, which must be evaluated in order to meet the interest of the insured. Basic coverages are those that have essential items, present in most insurance offered to the public.

Here, the insured is entitled to compensation for damages caused by explosion, lightning and fire, for example. As for additional coverage, it is possible to hire packages that include the interior of the property or, even, civil liability insurance , which protects against damage to third parties.

For example, if an object falls out of your window and unfortunately hits a person, you guarantee the right to reimbursement of all medical expenses. Other examples of additional coverage are against:

theft;
theft;
vehicle impact;
electrical damage;
damage due to windstorms, floods or hail ;
personal accidents;
loss coverage;
payment of rent to third parties, among others.

It is important to note that each insurer has different rules and criteria. Therefore, it is essential that you search the market for serious companies that are recognized for the safety and quality of the service offered.

What is residential assistance?

Residential assistance is a set of services focused on helping in cases of domestic emergencies. The insured who opts for this modality has services that help to solve everyday unforeseen events.

Thus, it is a 24-hour assistance, linked to home insurance, but focused exclusively on solving routine emergencies. As examples of services offered, we can highlight:

security and surveillance;
cleaning;
cleaning;
laundry expenses;
temporary roofing for tiles;
indication of professionals (such as a locksmith, nanny, etc.);
services for domestic animals , among others.

Assistance is very interesting for those who live alone, do not have a maid, often travel or spend a lot of time away from home. Insurers offer numerous options for plans, from the most basic to the most complete – in which the usage limit is higher and there is a wider range of services.

It is worth noting that the insured must seek an assistance plan focused on their needs, because it is not interesting to hire what will never be used. For example, it doesn’t make sense for you to include an additional pet services if you don’t have one.

What are the differences between insurance and assistance?

The characteristics of each of the contracts already point to their differences. While the insurance indemnifies the contractor for the risks described and defined in the policy, assistance is a package of services that aims to help cover common problems in the domestic routine.

Thus, residential assistance will help with small daily unforeseen events, but it will not protect against significant damage in the event of an accident. Meanwhile, the insurance is a broader protection and it includes the option of 24-hour assistance.

The difference between them is, therefore, in the moment of activating the service. Insurance coverage is requested in unexpected situations that lead to expenses and losses, such as electrical discharges and fires. Assistance will be called in for emergencies such as the loss of a key, a sink leak or an electrical problem.

What do you need to know before hiring?

To hire this type of service safely, the first step is to look for a serious company that clearly guides you about the clauses, coverage and requirements that need to be met.

It is also essential to know the contract, read all the data calmly and ask the broker for clarification in case of doubts. Remember that the policy will contain all information about your insurance, so only what is written in the document is valid.

Hence the importance of seeking such a service in serious companies committed to the care of their policyholders. These products are in high demand today, mainly because of their low cost and the benefits they bring to well-preserved families.

In addition to guaranteeing protection for the property in the event of something serious, they also offer assistance in solving small routine problems , which makes everyday life easier. When hiring, inform yourself about the assistance and look for an option that offers you security and practicality.

Do you understand the difference between a home insurance claim and assistance? So do not lose more time! Today’s busy routine requires the insured to have planning and efficient support to resolve situations that are beyond their control.