1. What is a life insurance policy?
It can be seen that the life insurance policy is extremely important for the beneficiary to have great benefits after the insurance contract is finalized and terminated. When agreeing to buy insurance, pay close attention to the terms set out to ensure the best benefits for you.
A life insurance policy is one of the most important legal and civil procedures between the buyer and the seller. This is considered to be essential evidence for the exchange of a special loss-of-insurance deal between the two parties, as determined by the Regulatory Authority and the obligations assumed by the two parties, as well as the rights There are two sides. Each insurance company has different types of life insurance policies, which generally cover issues of eligibility, obligations, benefits, time of execution, etc., for both parties to make. by agreement. Learn more about the features of a life insurance policy.
A life insurance policy is a form of legal document which expresses the agreement between the parties (the insurance buyer and the seller), recognizing the obligations and rights between the two parties. the insurance buyer, the insurance seller, the third party (the policy beneficiary or the insurance buyer, the legal representative of the insured), the claimant.
A standard non-life insurance policy will normally cover: • Claim Form. • Insurance Acceptance Notice. • Terms of Insurance of the Main Contract and Support Products. • Annex to the contract. Parties to a life insurance contract and referred to in the Contract:
- Insurance buyers: Insured persons must be individuals aged 18 years and over from the effective date of the insurance contract, ensuring full civil act capacity.
- The insured: Must be the subject of the life insurance provider to accept the terms of life insurance required in accordance with the provisions of law. The Insured Person will be mentioned in the Insurance Request and the Contract Annex.
The insured person may be a Vietnamese citizen or a foreign national living in Vietnam. For individuals who are foreigners, the duration of insurance must be less than the length of stay in Vietnam.
- Beneficiary: Individuals and organizations designated by the insurance buyer to receive insurance benefits when the insured person dies unexpectedly.
2. Types of life insurance policies
Life insurance contracts are divided into two main types:
- Life insurance policy form
A model life insurance policy is a type of insurance policy that is drafted and provides a template for the other party to respond within a reasonable time. If the buyer accepts, all contents of the contract will be executed immediately upon signing between the two parties.
Because of its simplicity and flexibility, the life insurance policy of a contract is often limited. The weak point of this insurance is that the insurer, the insurer is always the disadvantage due to the terms of the insurance seller, not change any terms and only accept. accept or not accept purchase.
However, this does not mean that all the terms in the contract are unreasonable. All provisions should be transparent, clear, reasonable and comply with legal provisions. Insurance premiums should also be based on clear statistics, ensuring the solvency of the business.
Long-term life insurance policy
For insurance of 10 to 20 years, or longer. This is considered as a form of profitable investment after a long period of patiently paying premiums. However, many people worry about cases that may occur when implementing insurance such as bankruptcy insurance company, currency devaluation ...
In the case of bankruptcy, it is very unlikely that large, reputable global insurers with hundreds of millions of dollars of capital will remain. These brands are committed to financial security for customers whether in the past, present or future. Therefore, when choosing to buy life insurance, choosing big brands, prestige is always wise to invest through insurance.
The devaluation of the currency is unavoidable whether or not you pay the premium. Not only the money, other types of business such as gold, real estate, securities also have the possibility of unexpected drops. Life insurance, however, limits the possibility of a return to the value of money compared to other forms of investment, as insurance premiums will be split many times over the year. This fee is always fixed during the contract period, for example the contract value is 10 million, in 7-10 years, the value of 10 million dong is no longer
But we just need to pay such a premium to complete the insurance. Some insurance brands also offer insurance types for the amount they pay, increasing the amount of insurance each year to prevent slippage.
3. Why cancel the policy before the loss?
Upon completion of the insurance on time, the reimbursement of the agreed percentage is a sure bet. However, in the process of insurance, if the contract is canceled, the probability of loss is very high.
After joining the insurance, the fee paid will be paid for the fee (the cost is calculated based on the age and gender mortality rates to pay for insurance benefits. as well as management fees during the committed period. In the first 2 years, cancellation of the contract will not be eligible for reimbursement as the related costs such as issuance, appraisal, commissions, printing ... are usually higher than in the previous years. again. The remaining years will be worth the refund, but will be less than the fee paid. However, in the event of an unforeseen event, the reimbursement of compensation from treatment, to compensation for life is great.
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