In the article, we will consider what life insurance for survival and its features are.
Among the insurance products that are offered to the public today, special attention is paid to life insurance programs. People of middle and old age very often have to hear about such services, but so far not everyone understands the essence of this method. Next, we consider the survival insurance process and all its subtleties.
Concept and definition
This service is one of the main types of life insurance. It involves long-term cumulative service. This technique serves as a specific form of long-term cash savings.
Survival Insurance: what are the features?
The essence of the program is the procedure for the accumulation of funds by the insured until an insured event occurs. The client’s contributions are kept in a special account, they are accrued certain interest, which will also be paid under the survival contract. The main feature of this program is that the accumulated money can be paid in two cases:
- After completion of the policy, they provide the full amount with accrued interest.
- As a result of the death of the insured person, the entire amount shall be paid out to the beneficiary, which is indicated in the application (if such person was not declared, then to the heir).
How is a survival insurance contract concluded?
It can be entered into a group of persons or members of the same family who will subsequently use this product together. The policyholder does not have to be the insured person. For example, an adult son will be able to draw up such a policy for his mother or his grandfather.
When drawing up a survival insurance contract, the state of human health must be taken into account. When filling out, he, in turn, must answer a number of questions that relate to his chronic diseases and other physical problems. Taking into account all the information for this person will form an individual program and calculate the size of contributions. In cases where clients insist on very high amounts or long insurance periods, a medical examination may be required. Thus, the insurer minimizes the risk of concluding an agreement for terminally ill patients.
Insurance situations: death policy
What is the life expectancy for insurance?
One type of service is a program that provides for the payment of compensation in the event of death. According to the conditions, clients make an annual payment, and after the insured has passed away, they receive the amount indicated in the policy. In the event that this does not happen within the insurance period, then all the money paid before will go to the company that issued the policy.
A feature of term insurance is that the specified amount in the policy upon death is paid to the beneficiary in full, regardless of the number of contributions made earlier. Such an agreement can be concluded for any period from one year to twenty years, but provided that they insure a person who is not older than 65–70 years.
The value of the insurance value is set individually. Documents indicating the causes of death of the insured must be submitted by the recipient of compensation. Not all factors take as a basis for the payment of funds. The insurer has the right to refuse to pay in the following cases:
- When it comes to suicide.
- Death occurred as a result of a chronic disease that was hidden when receiving a policy.
- Deliberate actions in order to obtain insurance.
Insured event: life insurance
How can I get this survival insurance program? This option involves obtaining the accumulated funds by the beneficiary after the death of the citizen specified in the policy. Under the terms of the agreement, he must make a one-time contribution or make regular payments over a specific period of time.
In the event that the insured person survives to the age specified in the contract, the amount is transferred to the beneficiary. A feature of the lifelong program is that it acts like a bank deposit: how much has been accumulated, including interest, is paid as much.
This type of insurance differs from the previous type in the absence of restrictions on age and health. The contract is concluded with people of absolutely any age, and they may not claim that they have diseases. The application has a standard form without special attachments. After issuing such a policy, an account is opened in the name of the client, where he will have to deposit money.
Contributions and Payments
The size of insurance premiums will directly depend on the amount of insurance. The frequency of payment may vary: once a quarter or six months, once a year. Some people who have this type of insurance pay a one-time fee for the entire time. True, for this it is necessary to have certain means.
Such a policy acts as a kind of investment of funds in the future. Thanks to this, you can not only save up money, but additionally increase it by the onset of a certain period. Thus, people are insured against the risk of death or accidents.
To the minus of the considered type of service, which many users note, is that this investment is long-term and cumulative. Given that this type of document is a novelty for Russia, not many customers can share their experience in its use and design.
Payment Terms
Payment is made upon the occurrence of an insured event:
- Insured persons at their survival until the end of the insurance period in the amount of the specified amount.
- Beneficiaries specified in the contract. They receive payments in the event of the death of the insured citizen in an amount that depends on the chosen service option: either in the amount of the insurance amount or in the number of paid contributions at the time of the death of the client.
An example of investing and determining the amount of payment
Suppose that over the course of fifteen years a citizen decided to save half a million rubles. At the time of drawing up the contract, a person is full forty-five years. Contributions for this insurance amount will be 30 thousand rubles annually. If a person survives before the policy expires, he will receive an amount equal to 620 thousand rubles. In this case, the percentage of return is six. If during the term of the agreement the individual dies, then the company will pay the amount of contributions that have already been paid.
Life insurance for surviving an event is recognized by many as not so much a good insurance in case of death or trouble, but as an investment. You can compare this type of service with a bank deposit. True, there will be much less red tape, and in the event of death it will be much easier to get money.
Pros and cons
When choosing a survival insurance, it is very important to clearly imagine all the advantages with the disadvantages of the programs offered today. Among the advantages of this choice are the following:
- The savings scheme makes it possible to save money for relatives or yourself.
- The beneficiary can be any citizen, regardless of kinship, inheritance rights or other factors.
- Upon death or expiration of the policy, payment is made in the shortest period. Carry out it immediately after the application and the required documents confirming the cause of death.
- There is an opportunity to choose any insurance period, ranging from twelve months to twenty years.
- Anyone can insure relatives and close people.
- Compensation can be received in case of injuries, accidents.
Life insurance, unfortunately, is not so perfect, it has some disadvantages, which include:
- Age restriction (persons aged seventy-five years and older, as a rule, are not insured).
- There are limitations due to poor health.
- It is possible to lose the entire amount in the event that before the end of the insurance period the corresponding case does not occur.
All of these disadvantages are not related to life insurance. At the same time, everything is simpler and much more affordable. The contract can be concluded by a person at any age, with health problems and so on. This insurance program allows you to accumulate money that will be useful in case of loss of a loved one.