In general, clients of insurance companies are not very informed about the small print of the signed contracts. Not knowing these technical aspects can lead to serious problems such as choosing the rate that makes you pay more in the future.
Therefore, since Insurance Academy They have created a blog within their website to explain to users important content related to insurance services. On this way, One of the most frequent doubts of the insured is how the rate evolves in the Death insurance.
What are the ways to show increases by insurers?
Many insurers show increases in the price of death insurance rates as rate changes per thousand euros of insured capital. This implies that the higher the death insurance rate, the greater the jump or price step year after year. Instead, other companies choose to reflect this issue in the form of an annual bill increase or hike, which is cumulative.
For example, if at age 70 it rises 326 euros per year, that is, 26 euros per month, each year that the client passes, if he has chosen the Natural Premium, he will accumulate 26 euros more in his monthly payment. A third way of showing the evolution of the price is to indicate the first annual total net of the insurance, having us to calculate the taxes. Today, the insured must add to this an 8.3% tax. In conclusion, any of the three forms show how complicated this type of natural rate becomes financially, especially after the age of 65.
Year after year, the rise in the natural rate
With what was explained above, it is clear how cheating companies can be with life and death insurance, in the long term. When analyzing in detail the fine print of the rise table, it can be seen that the rates applied to the customer’s age do not stop increasing. If initially the 22-year-old insured pays a 2.88% rate, as they get older it increases by 0.12% per year. To this, we must add all the taxes that the companies continue to pay.
From Seguros Academy, they invite customers and users to enter their blog and calculate how the death insurance rate evolves with the table that the company has created on how various well-known companies are managed.. In this way, the insured will be able to find out how these increases occur, if they have chosen the natural premium. In turn, in case you need advice, Seguros Academy provides this service free of charge.
