For insurance policies that are expensive, try microinsurance

Microinsurance is insurance that is acquired, at a low cost, by people who do not have enough income to contract another with greater coverage. They also constitute a financial shield and can be hired easily and without so many requirements. Here we will tell you its advantages and what they cover.

Microinsurance covers economically against situations such as accidents, illness and death, they are a safeguard for families. Their hiring is simple and they can even be paid in installments. The advantage of any insurance becomes evident when making them effective, the lesson is that it is cheaper to have an insurance policy than to face a contingency with nothing.

In the case of microinsurance, the insurer pays the insured sum five days after the application has been submitted. Photo: Pixabay.

In Latin America and the Caribbean, 85% of microinsurance is life and accident. It is considered that 7.9% of the population on the continent and 15% of that of Mexico have microinsurance, they are aimed at low-income people.

The characteristics of microinsurance are:

His hiring is immediate. No medical examination is required to hire it. Anyone can hire them. They are accessible to low-income people. It is common for the duration of these insurances to be annual. Payments are small and are made by the week, fortnight or month. Loss costs are not considered a deductible, coinsurance or copayment for the insured or their beneficiary.

Microinsurance is offered by

Insurers. Banks. Bank correspondents. Savings banks. Sofomes. Microfinance institutions. Social assistance programs.

The limits of the sum insured for individual microinsurance is up to 4 times the annualized general minimum wage in force in Mexico City.

The limits of the sum insured in the case of group microinsurance is up to three times the general minimum wage in force in Mexico City, annualized per member.

The monthly premium for the insured risk is not more than 1.5 days of the general minimum wage in force in Mexico City.

When contracting microinsurance, the insurer delivers a policy, in the case of the individual contract, or a certificate for the group contract. These documents contain the following information:

Name, telephone number, address and website of the insurance institution. Sum assured. Name and date of birth of the insured. Number and effective date of the policy or certificate. Forms and date of premium payment. Detail of what the insurance covers and what it does not cover. Name of the beneficiaries and the percentage of the sum insured. Procedure for filing a claim and for payment of compensation. Stamp of the insurer and signature of the insured.

To collect the microinsurance you must present the following:

Proof of payment of premiums, policy stamped and signed by the insured. Documents that prove the death or loss of the property or person. Documents that prove the beneficiary (birth certificate, official identification, or a guardian in case of being a minor).

Payment of the insured premium is made by the insurer five days after request. If you do not have all the documents to make the collection, go to the insurance company.

The microinsurance can be canceled if the insured notifies the cancellation 30 calendar days before or due to non-payment of the premium.

The Condusef gives the following advice for contracting microinsurance:

Verify that the institution is registered in the Condusef’s Financial Service Providers Registration System (SIPRES). Before hiring it, read the insurance conditions carefully. If they are not clear to you, ask someone to explain. Compare various options and, in addition to finding out the cost, also consider what microinsurance covers. Designate your beneficiaries clearly. Check in your contract that the data is correct. If you have doubts, consult the advisor. Inform your family that you have taken out your microinsurance, its characteristics and the place where you keep the policy.

Could you be a beneficiary of life insurance?

If you consider that you can be a beneficiary of life insurance, the Condusef offers you the service called SIAB-Vida so that you find out. You only need to present yourself with these documents in the Condusef:

Copy of official identification of the applicant. Copy of the death certificate of the deceased. Power of attorney in case the procedure is carried out through an attorney or legal representative. If the beneficiary is a minor, the father, mother or guardian must present a copy of the birth certificate.

The Condusef will give the answer in 30 working days.

More information in our Insurance Section.