Insurance Products Explained: Types and Coverage
Insurance Products Explained
Property Insurance
Fire Insurance
This insurance covers damage caused by fire to the insured property, within the limits prescribed by law and the contract.
Robbery Insurance
This insurance covers damage caused by the illegal removal of insured items, within the limits prescribed by law and the contract.
Liability Insurance
This insurance covers damages to a third party caused by the insured, as defined by the contract.
Credit Insurance
This insurance covers losses resulting from the insolvency of the insured’s debtors, within the limits prescribed by law and the contract.
Surety Insurance
This insurance covers losses incurred by the insured due to the failure of a policyholder to meet their legal or contractual obligations.
Profit or Loss of Profits Insurance
This insurance covers the insured’s loss of economic performance due to an event or activity described in the contract, within the limits prescribed by law and the contract.
Legal Defense Insurance
This insurance guarantees the payment of legal costs for the insured when involved in administrative, judicial, or arbitral proceedings.
Reinsurance
This is a contract where an insurer transfers risks incurred in an insurance contract to another person or insurance company for a premium.
Multi-Risk Insurance
This insurance contract groups securities from different policies to provide coverage for various risks in a single document.
Home Insurance
These policies aim to cover all risks that may occur in the home, from the building itself to furniture and personal belongings, with some limitations.
Communities of Neighbors Insurance
This is an adaptation of home insurance policies for apartment buildings, covering similar risks as home insurance.
Trade and Industry Insurance
The basic guarantees are similar to home insurance. However, this type of policy has specific assurances, including:
- Theft
- Bodily Injury
- Refrigerated Goods
- Warranty Support
Personal Insurance
These policies cover risks that may affect the life, physical integrity, or health of the insured.
Life Insurance
Upon payment of the stipulated premium, the insurer agrees to provide the beneficiary with a capital sum, income, or other agreed-upon benefits in the case of death or survival, within the limits prescribed by law and the contract.
Accident Insurance
This insurance provides a monetary amount and/or medical care for bodily injury suffered by the insured, unrelated to their intention, both in their professional and personal life.
Disability Insurance
The insurer agrees to pay the agreed-upon amounts on a grant basis or as a lump sum if the insured suffers a disability as defined in the policy.
Healthcare Insurance
This insurance provides medical and surgical services in the event of illness or accident.
Retirement Plans
These are insurance contracts that combine risk and savings with the following features:
- Contributions do not reduce the personal income tax base.
- Perceptions received are taxed as capital income.
- The contributed amount may be redeemed even if the policy has not expired.
- They cannot be transferred from one entity to another.
- If the owner dies, the heirs are subject to inheritance and gift tax.
Pension Plans
These plans have the following features:
- Contributions reduce the personal income tax base.
- Perceptions received are considered earned income for income tax purposes.
- The contributed amount can be redeemed according to the agreed-upon terms.
- They can be transferred from one entity to another.
- If the owner dies, the beneficiaries are taxed on the benefits as employment income.
Motor Insurance
Mandatory liability insurance (third-party) covers damages to third parties, including:
- Personal injury (up to 70,000,000)
- Material damages (up to 15,000,000)
Exclusions:
- Damage caused to the driver of the insured vehicle.
- Damage to the insured vehicle itself.
- Damage to stolen vehicles.
Other non-mandatory coverages:
- Own damage
- Theft
- Legal assistance
- Travel assistance
- Fire
Franchise:
A franchise in car insurance lowers the premium amount, but in return, the insurer or policyholder participates in the cost of repairing the damaged vehicle.