Terms and advantages to collect the life insurance

Terms and advantages to collect life insurance

In this article, we will explain the existing terms and advantages of collecting life insurance and include a practical example that we deal with in our legal office.

Term life insurance provides coverage for a limited period of time and generally costs less than permanent life insurance. Which one is right for you will depend on your circumstances and needs, although some people choose to purchase both types to meet the changing needs they anticipate throughout their lives.

Since term life insurance provides coverage for a limited period of time, you may be wondering how long that coverage would last, and if you can purchase 30-year term life insurance.


The deadline for reporting a claim is seven days after knowing it unless otherwise specified in the policy. 

In non-compliance, the insurer may claim the damages caused by the lack of declaration.

The insured must also provide the insurer with all kinds of information about the circumstances and consequences of the claim. In case of violation of this duty, the loss of the right to compensation will only occur if there was intent or gross negligence.

The law sets a five-year statute of limitations for claiming personal insurance, such as life, accident, or illness. The prescription can be interrupted by extrajudicial claims (burofax, certified letters, emails, etc.). The insured can claim both compensation and default interest.

In short, by law, the insurer has up to three months to pay compensation from the notification of the claim and the provision of the corresponding documentation. In case of not doing so for unjustified reasons, it could be sanctioned (compensation will be increased with the payment of an annual interest equivalent to the legal interest of the current money).


We have talked about deadlines for the proceedings when it comes to being able to collect life insurance, and it is possible that, due to ignorance, some have been missed. Consequently, the company may be reluctant to provide the corresponding capital.

However, if the failure to notify you within seven days is due to a reason that is neither negligent nor willful, you have a remedy. It is possible to request the certificate quickly, keep the proof of presentation and notify the insurer of the claim as soon as it is in our possession.


Life insurance can be more advantageous than leaving some savings in a safe or in a bank for whom you want to designate as a beneficiary, be it your spouse, your children, a relative, or a friend because it is something that cannot be seized.

In an inheritance, you can inherit debts, too, if there are any. On the other hand,  the amount that comes from collecting life insurance is unattachable, even if the legal heirs or some creditor that the deceased policyholder may have a claim to collect what is owed to them. Thus, the policyholder rests with the peace of mind that, even if some debt appears, his beneficiaries can count on the amounts they will receive from the life insurance without any problem. 

In addition,  it does not interfere with any of the benefits that may correspond to the beneficiaries by Social Security. They will be able to receive as many compensations as there is insurance, without limits on amount or number, and collect the corresponding pensions, for example, for retirement, orphanhood, widowhood, or disability. 

By aamritri

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