Life insurance nuances. Life and health insurance. Child life and health insurance. Can the insurer do this?

Life and health insurance provides for the protection of the property interest of the person who took out the insurance.

Usually such interests are closely related with life or death.

As a rule, insurance is a representation of the long-term interests of the insured person, because in the contract, life means a very long-term condition, and an event such as death is quite distant and completely unpredictable.

In endowment insurance, experts identify at least two invariant risks: death and survival. In addition to these, there are other risky features, for example, injuries to varying degrees, obtaining a disability group, death after an accident and many others.

According to the terms of the insurance, premiums must be paid regularly throughout the entire accumulation period, which lasts from the moment the contract is signed until the time of occurrence of one of the events listed in the insurance policy.

During the same period, the insurer carries out various operations with the funds of the insured person: he can invest them in various assets - securities, shares, deposit accounts, real estate.

Thus, by the time an insured event occurs, a fairly large amount has accumulated on the client’s account, the amount of which significantly exceeds the one that was introduced throughout the entire period.

The insurer is obliged pay security according to the terms of the insurance contract.

There are several types of payment of the amount: one-time and lifetime financial annuity.

Life insurance is accumulative function.

In addition, today there is an active development of various products with an investment component, in which several programs are combined in one.

Thanks to the purchase of an insurance policy, a person can easily solve various socio-economic problems.

Professionals combine them into two categories: social and financial. Solving the problems of the first group involves overcoming the imperfect system of state social insurance, as well as accumulating a large sum of money by a certain point.

The following types of life insurance contracts are distinguished:

1. Lifetime death insurance.
2. Temporary insurance in case of death.
3. Life insurance.
4. Endowment insurance.
5. Annuity insurance.

In the first case the insurer must pay the entire amount to the beneficiary, specified in the insurance policy, in case the insured person dies.

This agreement does not indicate the end date of its validity.

Premiums must be paid over the agreed period or during the life of the insured. This type of life insurance is most popular.

Temporary death insurance provides for the payment of funds over a certain period of time after the death of the insured person.

Life insurance suitable for cases of survival until the time specified in the insurance policy. As a result, the client has the right to receive the full amount. A type of special form of accumulation of funds is educational insurance.

Endowment insurance– this is a combination of temporary insurance with survival insurance.

Annuity insurance is a type of life insurance. There are immediate and deferred annuities.

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Some people mistakenly believe that a life insurance contract can only be terminated upon expiration of the validity period specified in it. This is not true, because in such a case we would already have many unresolved disputes and claims. We will tell you further how to terminate a life insurance contract.

At the moment, there are three options for terminating such an insurance contract:

• due to the client’s failure to pay insurance premiums on time;
• based on the application of the policyholder;
• at the initiative of the insurance company (if the client provided false information when concluding the contract or he does not adhere to its terms).

If the client wants to terminate the life insurance contract, the result depends on the availability and size of the so-called redemption amount.

What is the redemption amount? This is the same guaranteed amount that the insurer returns to the client upon termination of the contract. But be careful: the redemption amount appears only after the second or third anniversary of the signing of the contract. This is the case because in the first year of the contract the insurance company incurs significant costs in paying the broker or agent a commission. The issuance of the insurance policy itself and its processing are also not free. The insurance reserve, which is the basis for investment and the formation of that very redemption amount, is still small and does not generate income.

Thus, in the first years of the existence of an insurance contract, it is not recommended to terminate it. This is disadvantageous for the client, since he will not receive anything as a result.

It’s a completely different question if you decide to terminate the insurance contract in the middle of its validity. When a client enters into a contract, for example, for ten years, the redemption amount will be approximately half of the payments made in five years. But the good news is that upon termination of the contract, the client, along with the redemption amount, also receives investment income for five years. In this case, you can not only withdraw funds without much loss, but also increase them.

By the way, when terminating insurance contracts early, taxes are deducted not only from the redemption amount, but also from your investment income.

What to do when terminating an insurance contract is unprofitable?

Almost every person has times in life when financial troubles do not allow them to pay even urgent payments. If a client has entered into a life insurance contract, and it is unprofitable to terminate it at this stage, but he also cannot pay, what should he do? It is for such cases that insurers have developed some measures that will help the client in a difficult financial situation.

There is such an important point as the grace period. It may differ from one insurance company to another. For example, in a certain company this period is 45 days from the date of payment. This means that within a 45-day period the client can pay the insurance premium without loss and while maintaining his insurance protection.

What are we talking about here? Let us explain: the client can take out a loan from the company to pay for his further payments, that is, pay the payments in advance with the redemption amount already available. When the ransom money runs out, the number of possible courses of action is limited. The policyholder either repays the company’s loan, then the contract continues to be valid, or the insurance company terminates the contract with the client. In the latter case, the ransom amount will not be paid, because it was completely used to pay insurance payments.

There is another option for resolving the situation when the client can no longer pay insurance premiums. If you have a redemption amount, you can declare your intention to slightly reduce the insurance amount. If you, say, on the third or fourth anniversary of the contract, express such a desire, then your insured amount will decrease, but the life insurance contract will be valid until the end.

Considering the situation with the global financial crisis and non-payment of salaries, the question of how to terminate a life insurance contract is extremely relevant. However, even if you find yourself in a difficult situation, do not rush into such a responsible decision, but think about everything in advance.

Good afternoon dear friends! Today I would like to look at the most popular questions about life insurance and accident insurance.

What clients ask most often:

1. What is the sum insured?
Sum insured is the amount of money that is determined by the insurance contract, and on the basis of which the amount of the insurance premium (insurance premiums) and the amount of insurance payment upon the occurrence of an insured event are established.

2. What is an insurance premium (insurance premium)?
An insurance premium (insurance premium) is a payment for insurance that the policyholder is obliged to pay to the insurance company in the manner and within the time limits established by the insurance contract.

3. What is insurance payment?
Insurance payment is the amount of money established by the insurance contract and paid to the policyholder, insured person or beneficiary upon the occurrence of an insured event.

4. What is an insured event?
An insured event is an event that has occurred, provided for by an insurance contract or by law, upon the occurrence of which an obligation arises for the insurance company to make an insurance payment to the policyholder, the insured person, the beneficiary or other third parties.

5. What is the redemption amount?
The surrender value is the amount that is returned to the policyholder upon termination of a life insurance contract.

6. What is insurance protection?
The totality of the insurance company's obligations under the insurance contract.

7. What is insurance risk?
An insurance risk is an expected event against which insurance is provided. An event considered as an insurance risk must have signs of probability and randomness of its occurrence.

8. From what moment is a life insurance or accident insurance contract considered concluded?
The insurance contract, unless otherwise provided in it, comes into force from the moment of payment of the insurance premium or the first insurance premium.

9. How to determine the optimal amount of premium under a life insurance contract and how should it relate to the amount of the insured amount?
The contribution amount, on the one hand, should provide the necessary financial protection for you and your family, and on the other hand, its payment should not overly burden your family budget.

10. Is it possible to insure against an accident only for the duration of a trip or sports competition?
To insure travelers and athletes, it is more profitable to use special programs designed specifically for such cases. A standard accident insurance contract is concluded for a period of 1 year.

11. Are there any restrictions on the amount of insurance coverage under life and accident insurance contracts?
For life and accident insurance, the amount of the sum insured depends only on the amount of insurance premiums. Sometimes insurance companies limit the amount of insurance premiums based on the policyholder's annual income.

In life insurance, the amount of the insured amount for the risks included in the insurance contract is established by agreement between the policyholder and the insurer. However, the contract may provide for certain restrictions on the minimum and maximum amounts insured.

12. If the accident insurance policy is valid only during working hours, how is this time determined?
Working time is the time spent performing official duties. It is determined in accordance with the Labor Code of Russia and the Internal Labor Regulations of the enterprise.

13. Can a life insurance contract specify multiple beneficiaries?
Several beneficiaries may be designated under an insurance contract. Upon the occurrence of an insured event, payment is made to the beneficiaries in equal shares, or in another proportion, in accordance with the terms of insurance.

14. If the insurance contract does not specify a beneficiary, who will receive the insurance payment in the event of the death of the insured?
If the insurance contract does not specify a beneficiary, the insurance payment in connection with the death of the insured person is received by the heirs of the insured.

15. When must the insurance company be notified of the occurrence of an insured event under a life and accident insurance contract?
According to the terms of the insurance contract, it is necessary to notify the insurance company within 30 days from the moment when it became known about the occurrence of the insurance contract.

16. How quickly is insurance payment made when an insured event occurs?
Typically, insurance payment is made within 5 working days from the date the insurer receives all the necessary documents and draws up the insurance act.

17. Is it possible to terminate a life insurance contract for one reason or another?
The policyholder may terminate the life insurance contract by contacting the insurance company with a corresponding application.

18. If I want to terminate the life insurance contract, can I get the money paid back?
By terminating a life insurance contract, you receive the redemption amount in accordance with the terms of the contract. Depending on the terms of the policy and the term of the contract, the surrender value may be less than the amount of payments made, since part of the contributions of savings programs is spent on financing the risk of death and administering the policy.

19. Is it possible to change the terms of life insurance without terminating the contract?
Most insurance companies allow the client to change the amount of the sum insured, the range of risks and the frequency of payment of premiums.

20. If I can no longer pay for life insurance, do I have to terminate the contract?
If you cannot continue to pay your insurance premiums, but do not want to terminate the contract, it can be transferred to the “paid” status. The policy will be valid until the end of the period specified in the insurance contract, but the insured amount is recalculated taking into account the contributions you have made. Only insurance coverage for the risk of “death from any cause” is necessarily retained; protection for additional risks in such cases, as a rule, ceases to apply.

However, a transfer to the “fully paid” status is possible provided that the redemption amount is currently above the established limit, thus creating a sufficient reserve to stop paying insurance premiums.

21. What if I have financial problems and cannot pay premiums under a life insurance policy for some time?
Almost all life insurance contracts provide for a grace period, during which insurance protection continues to be in force, despite the delay in payment of the policy. Typically the grace period is 1-2 months.

In addition, you can reduce the amount of insurance fees while maintaining protection against all risks if you change the frequency of payments: for example, if you paid premiums annually, you can switch to semi-annual installments.

You can leave the same frequency of payment for insurance, but reduce the amount of the premium, also maintaining protection against all risks by reducing the sum insured.

The third option to reduce insurance costs is to waive some of the risks included in the life insurance contract. Due to this, the amount of the insurance premium will decrease, but the amount of the insured amount will remain unchanged.

22. The grace period for insurance allows you to defer the payment of the next installment under a life insurance contract. Can it be used once during the entire contract period or can there be several such grace periods?
The client has the right to use this opportunity when paying any next installment, without restrictions, regardless of the frequency of payment of contributions.

However, if an insured event occurs during the grace period, the insurance payment will be made minus the overdue insurance premium.

23. Under a life insurance contract, are payments made for bodily injuries sustained outside the territory of Russia?
Yes, unless otherwise provided by the terms of the contract. Most often, a life insurance contract provides insurance coverage throughout the world, except for countries that do not fall under standard risks.

24. What documents are required to receive insurance payment under a life insurance or accident insurance contract if harm to health was caused while staying outside the territory of Russia?
Standard package of documents: application for insurance payment, certificate from the medical institution to which the client initially applied, translated into Russian and notarized, passport, insurance policy.

25. Under a life insurance contract, will an insurance payment be made for damage caused to health as a result of a terrorist attack?
Yes, of course, such a payment will be made.

26. If the life insurance contract for children has expired and the child has not yet reached the age of majority, can his legal representative receive the payment?
Until the child reaches 14 years of age, deposits made in his name are managed by legal representatives. According to Article 26 of the Civil Code of the Russian Federation, when a child reaches 14 years of age, he can partially manage the deposits opened in his name, but only with the consent of his legal representative.

There is another option: contact the bank to open an account to which the insurance payment will be transferred, thus ensuring the opportunity to manage the funds by the child himself upon reaching adulthood.

27. How does endowment life insurance differ from other savings methods?
Only endowment life insurance combines the function of accumulation and at the same time financial protection. From the moment the contract begins, the insurance company assumes responsibility for the life and health of the insured person.

Due to the conservative nature of investments, endowment insurance provides stability of income, but if capital growth is in the foreground, it is worth looking for other mechanisms.

If you think about long-term financial planning, life insurance becomes a very profitable option. Endowment life insurance provides a person with a strong financial foundation.

28. If an insured event occurs under an accumulative life insurance agreement, as a result of which I will be exempt from paying contributions, for example, assignment of disability group I, will I continue to receive investment income after this?
In accordance with the terms of the insurance contract, from the third year until the end of the contract (except for programs with annuity payments), investment income will be accrued without fail, even if there is an exemption from paying insurance premiums due to the establishment of the insured group I or II disability.

29. If I cannot continue to pay the agreed premiums under the endowment life insurance contract and, in order not to terminate the contract, I agree to reduce the insured amount, will I continue to receive investment income?
When the insured amount under accumulative insurance contracts is reduced, investment income is accrued if more than three years have passed by the time the financial changes are made. If less than three years have passed, the insurance company reserves the right to defer the accrual of investment income.

30. What liability is provided for intentionally causing harm to one’s health in order to receive insurance payment under a life insurance or accident insurance contract?
According to Article 963 of the Civil Code of the Russian Federation, an insurance company is exempt from paying insurance compensation or the insured amount if the insured event occurred due to the intent of the policyholder, beneficiary or insured person.

All suspicious cases are necessarily investigated by the internal security service of the insurance company and, if there are grounds, a criminal case is initiated. Deliberate actions of the policyholder, insured person or beneficiary aimed at causing an insured event and receiving insurance compensation are regarded as fraudulent under Russian law. For committing such actions, criminal liability is provided under Article 159 of the Criminal Code of Russia

If you have any questions, write in the comments, we will be happy to answer.

Life is, of course, the greatest value of all that a person has, therefore, its insurance is a fact that is probably self-evident. However, we do not always do this of our own free will. Sometimes you are forced to take out life insurance when purchasing any services: a car insurance policy and so on.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to know how to solve exactly your problem - contact the online consultant form on the right +7 () . It's fast and free!

• Termination procedure
• Application deadlines
• Documentation
• Conclusion

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Sometimes, in a hurry, we are offered insurance, which we, guided by the principle of prudence, purchase.

But, as a rule, if you do not understand the insurance conditions at the beginning, you are faced with many problems later. However, not every person knows that an insurance contract can be terminated. In fact, this is completely real and you should have been warned about this when you purchased the insurance policy. Therefore, if you are not notified of such a function, you should read our article in more detail to be aware of all the points to avoid such problems.

You may also be interested in learning about termination of a loan insurance contract.

Grounds for termination of a life insurance contract

Of course, like any other contract, a life insurance contract can be terminated. But people who are at least somewhat familiar with civil law know that the grounds for termination may be different for each type of contract. Thus, if you have a document confirming life insurance, you must know everything about the grounds facilitating its early termination. The insurer himself should have familiarized you with them, or it should have been stated in the contract itself.

But what if you are not properly notified of the opportunity to exercise your rights?

Only the following can come to your aid in such a situation: Civil Code of the Russian Federation(Civil Code of the Russian Federation). It is this regulatory source that regulates all issues related to the conclusion and termination of a life insurance contract.

So In what cases can a contract be terminated? life insurance?

Firstly, in case the period specified in the contract has come to an end. That is, the contract has expired. Therefore, if you decide to terminate the contract on the eve of its expiration, then to avoid unnecessary hassle with documents, it is easier to wait until the expiration date and not renew it.

Secondly, if an incident occurs to a citizen that is not specified in the contract, and therefore insurance premiums are not paid, the contract is terminated almost automatically.

Each insurance company lists the insured events provided for indemnification in the contract, and it is not at all necessary that they be the same everywhere. So before you purchase life insurance, check out this list.

In general, it is possible to terminate a life insurance contract at any stage. Regardless, as a rule, of the period for which the agreement is concluded.

In order to terminate a voluntary life insurance contract, you can use any reason. When filling out the application, you must indicate it correctly and correctly. For example, you found more favorable insurance conditions.

You can compare this to an application for termination of a purchase and sale agreement, and in this article we talk about it.

Who can terminate the contract?

The life insurance contract can be terminated by both parties. This was discussed in the paragraph above. Both subjects of existing legal relations regarding insurance are legally equal, which means the right to terminate the contract is available to both parties not only on the basis of the contract, but also on the basis of the law.

So can the insurer terminate the contract and, if so, then for what reasons? More details in our next paragraph.

You will also be interested to learn about how unilateral termination of a lease agreement by a tenant occurs, and draw a parallel to this situation.

Can an insurer do this?

To answer this question, you need to know at least the basics of Russian civil law. Thus, the insurer may, at its own request and on appropriate grounds, terminate such a contract. How does this happen, and most importantly, why?

The very first and most important reason, as a result of which the insurer has every right to terminate the contract, is, of course, default established by the contract.

For example, some insurance companies stipulate in their policies that a person who has insured his life should not engage in extreme sports (many insurance companies actually consider this an important condition), however, the insured neglects this point. If the insurance agent becomes aware, the life insurance contract is terminated immediately.

The second case of termination of a life insurance contract by the insurer is the following fact. For example, insured events were specified in the contract, however, the one that occurred with the client of the insurance company was not specified as an insured event.

In this case, the insurance company has the right to terminate the life insurance contract if the second subject of the contract or agreement begins to demand any payments from it without providing appropriate grounds for this.

Find out in this article the general procedure for unilateral termination of a contract under the Civil Code.

Termination procedure

Termination of a life insurance contract is certainly an important procedure and consists of a number of systematic actions that must be performed. If you follow our detailed instructions, you will not have any problems with this.

So, first you will need to go to the insurance company where you signed the contract and certainly to the same office. Before you begin to go through the termination procedure yourself, ask the company’s employees what they can advise you. In each insurance company, the procedure may be slightly different, but still different, so you need to find out all the nuances.

Then, ask application form. If they don’t give you the form, or they say it doesn’t exist, ask for a sample or, at worst, an A4 sheet. On it you can safely indicate the coordinates of the insurance company, your initials, address and telephone number. Then, in the middle of the line, write in large letters the word “Application for termination of the life insurance contract.” Next, you need to describe the reasons that prompted you to take such an action, as well as the main difficulties that you encountered when cooperating with this insurance company.

After this, do not forget to date and sign. You must write an application addressed to the head of the insurance company or, at worst, a branch.

In our other article, you can also learn how to file an application for early termination of a contract.

Here you can find a sample letter for terminating an insurance contract.

Application for termination of a life insurance contract

You must hand over the application to employees, who in turn must consider it within the time limits established by law.

The next step is to accept your application and agree to terminate the life insurance contract. It must be compiled must be in writing, and have all the legal conditions for existence. The signature of the branch manager and yours.

Also, in addition to terminating the life insurance contract, you can demand the return of the premium, which you paid as payment for the insurance contract.

If you never used the insurance policy, if there is a specified point in the application, the insurer is obliged to return all the money to you.

Application deadlines

The deadlines for applying for termination of a life insurance contract are quite simple. Thus, it is possible to contact the insurance company to terminate the contract only if the contract has not yet ceased to be valid. All life insurance contracts are urgent. That is why, after the contract has expired, there is no point in contacting the insurance company.

Also, in your practice, it may be useful for you to know the deadline for a claim to the bank for termination of the contract.

Documentation

List of documents, for contacting an insurance company to terminate a life insurance contract is not so great.

So, you must have with you a passport proving your identity, as well as a copy of it. They will be needed when submitting and completing the application.

In addition, you must have a copy and original of the life insurance contract.

You must also have other documents influencing your decision to terminate the contract and an application for termination if you wrote it before appearing at the insurance company.

All documents without exception must be in your hands in its original form, but in addition to them there should be copies.

If you are terminating the contract part-time, you will also need to prepare a certain package of documents.

Conclusion

Today, a life insurance contract ceases to be a whim of citizens concerned for their lives.

A life insurance contract must be drawn up when taking out a transport insurance policy and in some other cases.

That is why citizens cease to notice the importance of this type of insurance and increasingly attribute it to the whim of the state.

Take care yourself and your loved ones!

Most reliable leading Russian banks now require their borrowers to insure their life and health in order to protect themselves from risks. Since this event is extremely expensive for clients, many of them seek to avoid life insurance, citing the fact that such a provision is not provided for in the legislation.

However, this type of insurance is necessary not only for the bank and the insurance company: it also contains advantages for the borrower himself. What they are expressed in will be discussed in this article.

Mortgage life insurance: main features

Since, within the framework of mortgage lending, a significant amount of funds is allocated for an impressive period of time, it is impossible to do without risk insurance. Financial legislation obliges to insure only real estate acquired under a mortgage and serving as collateral.

However, Sberbank of Russia, VTB 24, Alfa-Bank and many other financial giants that offer the most favorable conditions for housing loans include life and health insurance in the list of mandatory requirements for their clients.

Of course, this provision contradicts Article 16 of the Federal Law “On the Protection of Consumer Rights”. However, although the bank does not have the authority to oblige the borrower, it has the right to refuse to issue a loan without insurance. Then you will have to look for a housing loan in another less reliable financial institution, although according to the latest data, more than 90% of Russian banks make a similar requirement.

It is important to remember that life and health insurance is the most significant expense you will face when taking out a home loan. Insurance maintenance can cost 7,000-18,000 rubles per year. Moreover, the older the borrower, and therefore, the greater the risk of his illness or even death, the higher the insurance rate. But even in light of such significant costs, most experts are inclined to believe that life insurance is important when taking out a mortgage.

Benefits of mortgage life insurance

Since a mortgage is not issued for 1-2 years, but involves regular payments for 10-30 years, it is time to think about the state of your health, especially if the loan is not taken out at a young age. The fact is that there are at least five important benefits that come with life insurance, including:

It is worth noting that, to a certain extent, life insurance indirectly protects against inflation. After all, if funds are set aside to repay a loan in the event of emergency circumstances, then over time they will depreciate, which cannot be said about payments from an insurance company.

An essential aspect of life insurance is the gradual reduction in the amount of regular payments as the balance of debt decreases. So, every year, insurance company specialists evaluate the remaining debt and recalculate insurance premiums for the coming year.

Currently, an insurance policy for a period of one year on average costs about 1.2-1.6% of the outstanding balance. So, if a bank client took out a housing loan in the amount of 2 million rubles, then in the first year he will pay about 30,000 rubles, which is 2,500 rubles per month. In each subsequent year, this amount will decrease.

Insurance companies are very interested in attracting customers who want to insure their lives, and therefore provide them with significant discounts and offer seasonal promotions that allow them to reduce the percentage of the insurance premium by 0.5-0.8%. Such benefits allow you to save a significant amount over the entire life of your mortgage.

Important nuances when taking out life insurance

The basis for obtaining life insurance is the contract that the borrower enters into with the insurance company, in which you should pay attention to the following points:

• List of cases recognized as insurance;
• The amount of the insurance premium and monthly payments, as well as the procedure for their calculation;
• The volume of the insurance deductible and its type – .

When applying for insurance, the insurer will have to provide a medical card completed after an examination in a certain clinic, as well as fill out a questionnaire, which mainly determines how healthy the borrower is leading a life. In these documents, you should not try to fabricate information, presenting yourself as perfectly healthy to the insurance company. The fact is that if the borrower’s condition worsens or dies, the insurance company has the right to cut the insurance premium, explaining that the client hid the real state of affairs from them.

Nowadays, all financial experts say with one voice that life insurance is beneficial for the borrower. After all, if the mortgage is planned to be paid from wages, then in case of illness this source automatically disappears, which can lead to the loss of the mortgaged property. Insurance will help minimize these types of risks.