The ideas of personal and property insurance are similar - the person who wishes sends a request to a specialized fund, where the payments of many participants are accumulated. When an insured event occurs, these accumulations are used to indemnify. A distinctive feature of the personal insurance program is its object. The contract is concluded on the subject of the client’s life, his ability to work, as well as health aspects. These phenomena do not and cannot have a real money price, which significantly complicates the concept of the economic essence of personal insurance.
General view
Personal insurance is an atypical program: it is not possible to compensate the victim for damage, as is the case with property insurance. The company with which the agreement is concluded provides financial support to a person who finds himself in a difficult situation, to his relatives - it depends on the peculiarities of the case, the nuances prescribed in the agreement. Insured event - death of a client or loss of his health.
Specialists accepted the classification of personal insurance. Aspects of analysis:
- risk volume;
- type of insurance;
- program duration;
- number of participants;
- form of payment.
When analyzing risk volumes, personal insurance is allocated:
- life in case of death,
- acquiring the status of a disabled person,
- disability.
The conclusion of an agreement is practiced, according to which the insurance company undertakes to reimburse expenses for medical service.
Types of personal insurance:
An agreement can be signed on an individual basis, when the policyholder is a natural person, but a collective program is possible when a group of people immediately becomes the policyholder, the insured.
The program is short, that is, the contract covers a period of less than a year, medium-term (no more than five years), long - from six years or more. As a rule, a personal insurance contract lasts no more than 15-20 years.
Insurance coverage can be paid by rent or at a time. The insurance premium is paid every year, every month or at a time.
Forms and their specifics
Most often they conclude a personal insurance contract, which implies the survival of the client of the company until the termination of the agreement. The laws established that the insurance company fulfills its obligations if by the time of the last day the insurance premiums have been paid in full. On the day following the time period specified in the agreement, the right to amounts appears. There will be no reason for refusal of payments when, during the period of the agreement, a person received any payments from the insurer due to an accident. The legislation gives three years to pay the prescribed amounts. The countdown begins at the end of the agreement.
Often, voluntary personal insurance is subject to an accident, due to which the insured person suffers damage to health. At the stage of concluding an agreement, it is important to describe very clearly which particular situations fall under the agreement and what consequences they provoke. Upon the occurrence of the described situation, the insured receives the right to the amount specified in the contract. The amounts payable depend on the characteristics of the damage received - this may be the maximum amount under the contract or its percentage.
For personal insurance risks, a private insurer is obliged to pay the client all the amounts specified in the agreement, not looking at the availability of state, social payments to this person. If the client receives a pension, compensation for damage, this does not affect the amount paid to him under insurance. At the same time, money is transferred not for what happened, but for the consequences that it entailed. The client of the insurance company receives a certain amount - a percentage of the agreed amount. The percentage depends on the degree to which health is affected. This estimate is calculated according to the table adopted by the insurance company - the client has the right to get acquainted with it even before the signing of the agreement.
Only health deterioration that occurs after an accident within a three-year period is taken into account. Later events are not taken into account.
The question of life and death
Personal insurance may include life insurance. For such an agreement, the absence of strictly agreed terms is practiced, but the limits for making payments under the program are clearly established. You should not rely on payments if the client of the insurance company died within six months of the conclusion of the agreement, while the cause was heart disease, vascular disease, malignant neoplasm. The insurer is not obliged to pay anything even if the insured committed suicide in the first six months after the conclusion of the agreement.
If the life of the client has become the object of personal insurance, the liability according to the agreement regarding illnesses begins to the full from the seventh month. Strict restrictions are imposed on the death of a person, provoked by an unlawful act, a violation of the law. The current practice is such that it is not paid insurance, and the redemption amount for the entire period that was paid by the client during his lifetime.
Labor and future
A fairly common format of personal insurance is cases of loss of ability to work, as well as death. More often, such agreements are signed by persons aged 16-60 years. The validity period of the agreement is from a year to two decades. In order for the insurance company to agree to a contract, you will first have to undergo an examination for an adequate state of health. At the age of 45 years and older, you can count on a program that will cover the time until reaching the age of 65. Mostly insurance companies prefer not to work with older people - the risks are too great.
Since personal insurance under this program occurs with the obligatory preliminary control of a professional doctor, it is necessary to pay all amounts under the contract immediately. The company has the right to terminate the contract, not to pay anything under it if, within two years from the moment of conclusion of the agreement, the insured person died due to an illness that he knew about, but hid it. The policyholder has no right to a redemption amount. If the client does not pay fees within the time frame specified in the agreement, the agreement is automatically considered null and void.
Endowment Insurance
A fairly common, profitable option of personal insurance (VTB, Sberbank, Renaissance and many large financial enterprises are actively promoting it) involves the investment of free money in order to accumulate in the accumulative insurance program. Contributions are long-term, but periodic arrangements can be made. The insurance company undertakes to provide a certain percentage of profitability for all transferred amounts.
The personal insurance arrangement specifies a specific time frame when the agreement ceases to be valid. At this point, the insurance company must pay him the amounts indicated in the official paper. If the policyholder has died before the agreed date, the right to accumulate and interest on them passes to the heirs.
Lifetime annuity has a similar logic. In fact, this is a funded arrangement by which the beneficiary regularly receives deductions. The essence of personal insurance of this form is a pension that supplements the basic one.
Rules and restrictions
The amount of the personal insurance contract depends on the wishes of the client and the offer of the insurance company. The larger this value, the more significant the contributions payable. Therefore, an individual chooses a program that is acceptable in his financial situation.
If an accident has occurred that has caused damage to health and disability, if a person has successfully survived until the last day of the program, he receives all the necessary payments on his own. If voluntary or compulsory personal insurance was concluded by a citizen who cannot receive the money himself, the law provides for the possibility of third parties to participate, but only if there is a notarized power of attorney. The insured receives all the amounts agreed by agreement, even if the payment of contributions was not actually carried out by him.
Contracts, restrictions and tragic situations
There is a probability of the death of the insured occurring earlier than the person receives all the payments due to him under the agreement. In this situation, the right to receive money is transferred to the heirs. Already at the stage of concluding an agreement, the insured has the right to indicate to whom exactly the money will go if he dies prematurely. Anyone can be a posthumous recipient; the degree of kinship does not play a role. As long as the agreement is in effect, the policyholder has the right to replace the posthumous recipient. To do this, it is enough to draw up an application, send it to the address of the insurance company. Another option is to make an entry in the certificate of participation in the insurance program.
There is also such an option when the posthumous recipient dies earlier than the insured, while the person who concluded the agreement with the insurance company does not indicate a new recipient. A situation similar to the rules is the simultaneous death of both the insured and the recipient of the financial amounts indicated by him in the contract. In such a situation, immediate relatives can count on payments, the money is transferred according to the logic of inheritance. A similar situation applies to such a format when, in principle, the insured did not indicate a posthumous recipient.
Opportunities and their lack
All popular and reliable companies offering personal insurance (Renaissance, Sberbank, Alfa Insurance and others) in the standard contract necessarily mention the situation when the insured died as a result of the intention of the posthumous recipient under this program. If such a phenomenon is proved, this person is deprived of the right to receive money. Instead, transfers are sent by interested, specific legislation regarding inheritance. If the posthumous recipient is a close relative, he is excluded from the circle of persons to whom the insurance company can pay money.
The right to receive the amount is retained for three years from the date of death of the insurance program participant.
Under the personal insurance programs of the Renaissance, VTB and other large companies, experts often recommend that they enter into an agreement for a period of three years to two decades. It should be borne in mind that the majority of enterprises provide life insurance only until the moment when the client is less than 80 years old. The term of insurance begins to count from the first day of the month when the client first paid the fee. Completion - the first day of the same month after the number of years specified in the agreement. The contract is considered to have entered into force on the next day after the payment of the due contributions to the agent, and terminates at the time when the insurance period expires.
How to pay?
The client has the right to familiarize himself with all the tariffs of the enterprise before concluding an agreement. As a rule, the amount depends on the duration of the agreement, the age of the client, the amount of the sum insured. All calculations must comply with the official rates of the insurance company. Amounts due for payment can be transferred all at once or paid gradually.
Current laws allow not only cash payments, but also non-cash transfers. You can, for example, obtain consent for regular deductions from salaries, as well as transfers from a deposit held by the insurer at the bank. For cash payments, the agent is required to issue a receipt each time confirming the calculations. In some cases, you can agree on mail orders.
One-time contributions are allowed strictly in the form of cash, and the agent has the obligation to issue a receipt. Such a document, as well as accounting books for the programs must be kept by the insured for at least three years.
If the next installment was not paid on time, three months have passed, the contract is automatically considered terminated. The exception is treatment in a hospital. In this situation, the policyholder remains entitled to make settlements within 30 days from the date of discharge from the medical institution.
Redemption amount
The policyholder can receive this money if at the time the agreement is completed some money supply has been accumulated. Their transfer rules are prescribed at the stage of concluding an agreement. There is a strict restriction: payments are possible only under agreements that have been valid for at least six months. The insurance company has three years to transfer the redemption amount, the countdown starts from the day when the contract expired. If during life the insured person has not received the amounts due, they are sent to the legal heirs.
If the contract validity period is less than six months, the insurance agent is not entitled to issue a redemption amount. The policyholder may request the resumption of the program - the law provides for a three-year time period. The individual retains the right to renew an agreement that has been in force for more than six months, that is, one under which redemption amounts are due. This applies only to a situation where the actual payment established by the insurance agent has not yet been.
Collaborate or not?
If it was decided to renew the contract, which was terminated for various reasons, the interested parties have two options:
- all contributions arrears, including the current month, are repaid at a time;
- the amount for the current month is paid.
The agreement begins on the day after the transfer of the amounts due.
There is no way to renew the agreement if the policyholder obtains the status of a disabled person of the first group. This applies to the situation when the fact of disability was declared during the validity period of the insurance contract. It is not possible to renew the terminated contract if the policyholder is 80 years old or more.
Everything is changing
The conditions stated at the time of the agreement may change over time. For example, the policyholder may consider that the amounts that he has incurred upon signing the agreement are too burdensome for him. In such a situation, a reduction in the insurance amount is allowed, and contributions are recalculated. The resulting difference becomes the basis for calculating the redemption amount. You can immediately get it on hand or make it for the future as an element of contributions in order to pay less under the insurance program.
An alternative option is also possible when the policyholder decides that the amount under the agreement is too small. In this situation, a person has the right to conclude a second contract or even several. All of them will operate simultaneously, but you will have to pay fees for each of the programs.
Do I need this?
The life of any modern person is filled with numerous risks, although often we do not even realize this. The insurance program, as financial experts say, is perhaps the most convenient and reliable option to provide yourself with protection in the event of a variety of unforeseen circumstances. Unfortunately, risks can only be controlled within a strictly limited framework, and trouble always haunts everyone. An insurance program is not a method of preventing difficulties, but a way to reduce possible damage.
Personal insurance happens:
Mostly the agreements are made of the first type. The classic representative of the compulsory is medical.
Neither the policyholder nor the insurance company can prevent and foresee the occurrence of an insured event, increase or decrease the likelihood of such an event. Accident, suddenness - these are the key features of the very idea of the program. Personal insurance is to some extent a “shield” from the consequences of an unpleasant surprise.
Invest in the future
Cumulative personal insurance is the only program that is fundamentally very different from all others.It is aimed not so much at minimizing damage in the event of an unpleasant situation, but at the formation of accumulations. An investment program is more a pension than insurance, and the logic of its work is similar.
Both the insurer and the client are well aware when, at what moment, what exact amounts will have to be paid. There is no unpredictability in sight. The only difference from a simple pension is the ability to provide for the death of the insured person with the transfer of accumulation to the heirs.
All by the rules
Choosing a company to conclude an insurance contract, you should read in advance all the provisions of the agreement proposed by the company. Our country has laws that declare personal insurance restrictions. It is important that the provisions of the agreement comply with the requirements of the law, otherwise such an agreement will not be valid.