What is a insurance of life?
Having life insurance is the most plausible option when it comes to safeguarding the future of the family, and that of oneself , given the possibility of an unplanned incident occurring that results in the death of the policyholder or in some other of disability. This works, therefore, as an economic guarantee for the beneficiary thereof , ensuring the collection of a certain amount, agreed in the life insurance contract itself, if any of the previously mentioned cases occur.
However, and seen in any of these situations, there are many people who doubt what they must do to receive the money that, as beneficiaries, belongs to them . In this article we are going to explain, in detail, how life insurance is collected, focusing on the requirements to be met (documentation included) and the problems that may arise when doing so. Keep reading!
Requirements to be met to collect life insurance (due to death or disability)
Before explaining how life insurance is collected, for example, from a relative, it is necessary to verify that he has a policy of this type (and that we are beneficiaries of it). This information is obtained from the Registry of Life Insurance Contracts (depending on the Ministry of Justice) , since the insurers register the contracts in it (and update them periodically), although it will be necessary to wait 15 days from the death to present the request . Said body will take a maximum of 7 days to issue the document .
Once it is verified that you are a beneficiary and that, therefore, the life insurance payment corresponds, the next step is to go to the entity (insurer, bank, etc.) where the insurance was contracted and notify the death . After that, and to make the payment of the money marked in the life insurance contract effective, the request must be accompanied by certain documents (these being the most common):
– Birth certificate of the insured.
– Death certificate of the insured.
– Medical certificate of death, or medical report, indicating the causes of death of the insured.
– Certificate of the Registry of Acts of Last Wills.
– Copy of the last testament, Notarial Act of Declaration of Heirs or Judicial Order of Declaration of Heirs.
– Settlement and letter of payment of Inheritance and Donations Tax.
– Life insurance policy.
– Photocopy of the DNI of the beneficiaries (on both sides), which must be legible and, in the case of the document, be in force.
– Beneficiary benefit request (with FATCA questionnaire and money laundering).
– Certificates of ownership of the accounts of the beneficiaries.
In the case of a spouse, and only in him, the Marriage Certificate must be provided. If you are the son of the deceased, and beneficiary of the life insurance, you must also identify yourself, for example, with the family book.
Once all the documents are delivered , and these are verified, the money is paid , for which it is an essential condition to be the holder of a bank account (which must be indicated in the payment request).
When is life insurance paid?
How is life insurance (death or disability) collected?
Life insurance can be received in 3 ways:
– In a single payment .
– As a life annuity , for which the beneficiary’s life expectancy is estimated and, based on the total amount, monthly installments are established.
– As a temporary income , paid in a specific number of years.
What taxes do I have to pay to collect life insurance?
Usually, and in order to collect the corresponding money, as a beneficiary of the life insurance, it is necessary to have the payment of the Inheritance and Donations Tax up to date (whose settlement, as previously indicated, must be delivered among the necessary documentation to make the collection of life insurance). If it has not been done (and therefore has an outstanding debt), there is an alternative to be able to receive the life insurance and that is to make a partial self-assessment for the value of the policy (you have 6 months to carry it out).
In the event that the amount is charged for a case of disability (permanent or absolute), it must be taxed in the Personal Income Tax in the following fiscal year . It is recommended to reserve, from the money obtained thanks to the life insurance, the one corresponding to this personal income tax.
What are the most common problems to collect life insurance?
When applying for life insurance compensation, it may not be possible to collect it in certain situations. The most common problems that the beneficiary will encounter are:
Originated by the policyholder
– You have not paid any of the insurance premiums (and the contract may be canceled if it is something recurring).
– Do not include any beneficiary in the contract.
– Acts with malicious intent during the term of the life insurance contract.
– Do not communicate , when contracting life insurance, any previous illness .
– Carry out activities or risky sports .
Originated by the beneficiary himself
– Do not respect the deadlines (when notifying the death of the policyholder and submitting the request to collect the money).