Why conclude a life insurance contract?
1. Elimination of the negative consequences of harmful events, transferring the risk (danger) to the insurer.
2. With death insurance, enable the heirs (children, surviving spouse) to continue a normal life, without the economic stress that the death of the head of the family normally brings with it.
3. With life insurance, enable yourself to eliminate the risk of longevity and compensate for the difference in income (through annuity insurance) that retirement regularly leads to through planned savings (by paying the premium in temporary smaller amounts while it is possible thanks to your own income, i.e. while you are working).
4. Through planned savings, eliminate the negative economic consequences in the future caused by child’s education, marriage, child’s marriage (although joyful and desirable events in themselves, they lead to an increase in expenses – expenses, disrupt financial stability).
5. Tax credits.
6. A life insurance policy can be given as a pledge, so it can be a guarantee for private loans approved by banks.
What is a life insurance offer?
A life insurance offer is a form by which the policyholder or insured offers the insurance company to insure some of his interest. An insurance offer can also be provided by the insurer.
Who is the policyholder?
An insurance policyholder is a person who concludes a contract with an insurer. In the case of life insurance, the policyholder may or may not be the insured at the same time, that is, the insurance beneficiary.
What happens to the policy if the age of the insured is incorrectly reported?
With the exception of the general provisions on the consequences of incorrect declarations and the concealment of circumstances significant for risk assessment, the following rules apply to incorrect declarations of years of life in life insurance contracts:
1) The life insurance contract is null and void and the insurer is obliged to return all premiums received if the insured’s life years were incorrectly declared when it was concluded, and his actual years of life exceed the limit stipulated in the insurer’s terms and tariffs.
2) If it is incorrectly reported that the insured person is younger, and his actual years of life do not exceed the limit provided for life insurance, the contract is valid, and the insured amount is reduced in proportion to the contracted premium and the premium provided for the life insurance of a person of the insured person’s age.
3) When the insured person is younger than declared when concluding the contract, the premium is reduced to the appropriate amount, and the insurer is obliged to return the difference between the received premiums and the premiums to which he is entitled.
Who represents the insured in the life insurance policy?
The insured is a person whose life is insured, i.e. a person whose death or survival is taken as a decisive event for the obligations of the contractual parties.
Who is called the beneficiary of the life policy?
Disposing of the rights in connection with the contracted life insurance is a special privilege of the policyholder, and therefore the right to determine the beneficiary of the insurance is a unilateral legal act that (even though in accordance with the contract) is made exclusively by the policyholder.
However, if the contracting party is not the insured at the same time, but it is insurance that refers to another person, that is, the life of another person as the insured, then the written consent of that other person is still required, because the beneficiary has the right to the insured sum or compensation damages from the insurance contract.
What is the purchase of life insurance and when is it possible?
The purchase of the policy is possible if the insured cannot or does not wish to pay the life insurance premium anymore, and wants to terminate the insurance contract. In the event that he has paid at least three annual premiums, he has the right to a refund of part of the paid premiums, i.e. the purchase of the policy value. It is important to note that the insurer returns only a part of the paid premium, depending on the duration of the insurance and the passage of time since the insurance began.
What is life insurance capitalization?
Capitalization represents the so-called suspension of obligations to pay premiums due for a certain period or until the insurance expires.
The request for capitalization is submitted within the deadline set by the Conditions, which are an integral part of the insurance contract.
In this case, a new sum of insurance is calculated, which is called the capitalized sum.
With capitalized policies, there is life insurance for life and death, but all additional insurances contracted under the policy are canceled.
How is the insured’s access age determined?
The entry (age) age is determined as the difference between the calendar year of entry into the insurance and the insured’s year of birth.
What is the life insurance premium dependent on?
a) the insured’s entry age
b) the amount of the insured amount
c) the insured’s occupation
d) the insured’s health
e) the duration of the insurance
f) the dynamics of payment.
In what amount is the contractor entitled to a loan according to the policy?
The amount of the loan together with the approximately calculated interest for the entire period of use of the loan cannot exceed the amount of the purchase value of the life insurance policy calculated on the date of processing the application for loan approval.
What if the policyholder loses the policy?
It is necessary to request the issuance of a duplicate policy from the insurance company.
Upon occurrence of the insured event, will the insurance beneficiary, if he used the tax credit, receive the full amount of the contracted insured sum?
No.
When is the benefit paid on a life insurance policy?
The right to the attributed profit, which the insured has achieved by paying the life insurance premium, is realized only after the occurrence of the insured event, which also includes the expiry of the insurance (expiration).
Is the insurer obligated to pay the insured sum to the insured if the insured commits suicide?
The payment of the insured sum depends on the time of the suicide of the insured person, i.e. whether it was committed in the first, second, third or other years of the insurance period.
What is the age of access to life insurance for death and survivorship?
From the age of 14 to 65.
Up to what age of the insured person can life insurance cover?
Until 75 years old
