Dependency insurance gives protection to people who have some limitation to carry out activities of daily life normally.
Dependency insurance is a specific type of life insurance for those who have some limitation that does not allow them to carry out any activity of their daily life normally . These insurances are very useful for people in a situation of dependency , and can serve as a complement to the aid contemplated in the Dependency Law , by including different benefits aimed at making life easier for the insured person and their relatives or relatives.
Requirements for contracting dependency insurance
In order to opt for dependency insurance, the interested person must have a legally recognised dependency situation . Currently there are three degrees of dependency established by law: grade I, the most moderate ; the grade II or severe dependence ; and grade III or high dependency .
In order to take out dependency life insurance there is an age limit that, as a general rule, is set at 70-75 years , and a maximum renewal age set at 85 years . As in other types of policies, this insurance must be contracted before the loss occurs , which in this case will be the declaration of dependency .
What coverage does dependency insurance offer?
Taking into account the situation of the insured persons, this type of life insurance offers compensation , but as a general rule only to those persons who reach degrees of dependency II and III. The insured can decide how he wants to receive this compensation : in the form of capital, as a single payment; or as a life annuity, that is, in monthly, quarterly payments …
Some insurers also offer, as a supplementary benefit to compensation, family assistance coverage , also aimed at grade I dependents. Within this coverage, which also includes the family members of the insured person, the benefits are usually included. telecare benefits , home help and telephone advice .
Hiring the appropriate coverage is simple if you use a life insurance comparator , which provides us with all the policies on the market in seconds, and allows us to make our own comparison , reviewing coverage and prices.
Tax advantages of dependency insurance
These types of policies have some tax advantages, since they work like a pension plan. People insured with this insurance may deduct their premium contributions when making personal income tax . In addition, people who are related in a direct line or up to the third degree with those who are in charge of the person with an insured dependency under guardianship, the premiums of these insurances may be deducted in their taxable base, taking into account that the limit of the set of reductions is 8,000 dollars .