Legal Mechanisms in the Case of Inheritances from Life Insurance Contracts

Abstract

For an insurance contract to become a legal act, the person who wants to cede an insurance risk to an insurer, has the obligation to pay an insurance premium to the insurer who takes over the insured risk. The latter undertakes that, upon the occurrence of an insured risk, it will pay to the insured or the third person designated in the insurance contract, an indemnity limited to the insured amount. In this sense, regardless of the nature of the insurance contracts, we can say that, by signing an insurance contract, a legally binding agreement arises, whereby a party called the insurer undertakes to pay to the other party called the insured or to the beneficiary designated in the contract, an amount of money defined in the insurance contract, the insured amount, and the other party, called the insured/contractor, undertakes to pay the insurance premium established in the contract, under the established terms and conditions.

And in the case of life insurance contracts, the internal content becomes a legally binding agreement, considering that the contractual conditions as well as the additional terms and provisions are described.

In conclusion, from the perspective of the protection of human and material patrimony, we can say that the insurance contract is not used to the extent of the needs of both individuals and legal entities, although the costs of insurance contracts in relation to the insurance risks assumed by the insurers are quite low; however, in the event an insured risk occurs, the benefits of the insured are of the nature of covering the damage suffered.