How is the sum insured paid under a life insurance contract? Life insurance.

Survival life insurance is one of the types of life insurance, which can also be considered as a specific way of accumulating and saving money. The deposit is long-term, executed by an autonomous or combined (may be part of a life insurance contract) agreement.

Payments under the contract are received either by the insured person himself (provided he survives to the age specified in the contract), or, in the event of his death, they are transferred to the person indicated as. The main condition is a constant contribution of a fixed amount to the account.

Death insurance does not cover all causes of death. Such, for example, do not include the deliberate taking of one’s life or the exacerbation of dangerous chronic diseases that existed at the time of concluding the contract and were deliberately concealed.

Both programs are rarely issued in separate contracts; they are usually parts of other insurance programs.

When taking out a life insurance policy, a person determines a specific age or number of years, which are indicated in the contract as the period of his survival. A clearly established amount is paid in full after the validity period ends or loss of performance or death occurs.

If a case has been established for the application of insurance, then you will need to collect all the packages of papers that confirm the injury and the state in which it was received (state of intoxication is not allowed). Concealment of important diseases (for example, chronic diseases) and their complications is also checked.

The payment guarantee is provided by contributions made by a person over a specific period of time. In the event of death, the money contained in the account is transferred to the person who was included in the survival insurance contract as a beneficiary. If the policyholder himself survives the entire term until the end of the agreement, then all the money is transferred to him.

When drawing up an agreement, you need to indicate the following factors:

A fixed amount of money that a person deposits monthly or in one-time amounts into his account.
Contract term (1 -72 years). It can be anything. Step - 1 year.
The person to whom all the money will go upon the occurrence of an insured event or the death of the insured. You don't have to sign anyone up.

A mixed contract can pay out funds in a double or triple amount in the event of a serious injury and loss of capacity for work by the insured person. If productivity is lost by 60% or more, then all subsequent payments are halved.

Who can get insurance

A survival agreement can be concluded by a citizen or resident of the Russian Federation and a stateless person.

The limitation is the age of the policyholder: the minimum is one year, and the maximum is 72 years. At the end of the term, the insured person must not be more than 75 years old (if this happens, the contract is considered terminated). Exceptions to these rules include whole life insurance agreements.

The life contract policy implies a cumulative process (with interest accruing) throughout the entire validity period, but in the event of death, only the money accumulated independently (without interest) will be given to the beneficiary.

Survival is a combined type of insurance:

Contains most term insurance items.
Implies the receipt of a specific amount to a designated person upon survival.

How to get a life insurance policy

You can get a life and death policy in the same way as other DMP or WMD policies.

Step 1. View the information and choose the right insurance organization for you, one that you like and trust.
Step 2. Come to the company and get a free legal consultation.
Step 3. Registration of a voluntary medical insurance policy for survival and death. The amount, validity period are filled in and the beneficiary is selected.
Step 4. Decor .
Step 5. You must immediately pay the first savings portion (monthly/quarterly/annual first payment) or make a one-time payment of the required funds.

Survival insurance rates

The benefits paid after death with life insurance are much higher than with term insurance. An unjustified illusion is created of different parts of the insurance (a share for term insurance and a share for the accumulation of the amount).

Under a survivorship contract, the insurance company must pay the entire amount specified in the contract. The policyholder's share begins to accumulate in the account only after the person invests it for himself. It turns out that a person puts money in a bank and due to this, funds accumulate. The percentage is higher if the insurance company invests the funds received from the policyholder.

After the death of the policyholder, the company immediately returns all funds to the bank account or personally to the beneficiary.

Insurance cost

The price of an insurance policy when taking out life and survival insurance ranges from 150,000 rubles to 650,000 rubles. It all depends on the amount you want to deposit, either in the future or in a lump sum.

Life insurance in case you live to a certain age quite acceptable and beneficial for the common man. Survival can be ordered until a certain event, for example, an anniversary or birthday. In this case, all the money will be saved and transferred to the owner of the current account along with interest, who, in turn, will not lose anything and will even win.

Payments are made when:

Death (lifetime insurance contract).
Deaths (unfinished fixed-term agreement).
Life up to the age specified in the contract (mixed agreement).

Right when receiving payments:

According to Art. 934 of the Civil Code of the Russian Federation, paragraph 1 - the person specified in the agreement.
According to Art. 934 of the Civil Code of the Russian Federation, paragraph 2 - heirs (if it is not specified who should accept the funds).
According to Art. 934 of the Civil Code of the Russian Federation - the insured person (if the beneficiary is not specified).

Notice and payment periods

If the insured person dies or is injured, the insurance company must be notified as soon as possible. The shortest notice period is exactly one month (30 days according to Article 961 of the Civil Code of the Russian Federation, paragraph 3). The exact timing of notification of death and injury must be specified in the contract.

With an insurance contract for survival, the insurer’s company makes a decision on payments and makes them within 1-2 weeks. In the event of an unreasonable refusal of a well-deserved payment, the insured person must go to court, providing a package of documents (then, if necessary, to the regional magistrate court).

Pros and cons of life insurance

Life insurance for death and survival has a number of pros and cons. The positive qualities of such insurance are more convincing, especially for an elderly person.

Pros:

There is a savings part.
The ability to choose the person who will receive the payments.
Money is paid very quickly upon expiration of the contract.
Terms range from 1 year to 72 years.
Possibility of third party insurance.
Payments for serious injuries.

Minuses:

The entire interest savings portion expires upon the death of the policyholder.
It is possible to pay the accumulative part in a lump sum.
There is an age limit (not less than 1 year and not more than 75 years).
After reaching 75 years of age, the contract is automatically terminated.

The advantage of life insurance is:

Possibility of changing conditions at any time.
The currency of financial investments is any of the proposed ones.
It is possible to change the recipient of funds.
Early termination is possible.
Large savings percentage over a long contract period.
Availability of guaranteed profitability up to 3%.

The advantages of this type of insurance include: Variability of insurance payments:

life insurance with a lump sum payment of the insured amount;
life insurance with payment of annuity (annuity);
life insurance with pension payment.

The death policy includes all the above points and may have an insurance clause against any accidents. Insurance is paid to the heirs or relatives of the deceased. You should carefully study the terms of the contract because some incidents (for example, suicide) are not covered by insurance.

When concluding a contract, you cannot put “ticks” and signatures under the consultant’s dictation. The policyholder needs to read everything himself. It is not necessary to sign the agreement on the day you contact the insurance company. You have the right to consider the terms that are most beneficial to you in a calm environment. Consultations on all issues of the company's insurance programs are provided free of charge.

With a balanced approach, life and death insurance can provide significant support to the policyholder himself or his beneficiary in difficult situations associated with significant financial costs.

Life insurance and other risks (video):

It is a specific form of long-term savings of funds. It can be used as an independent type of life insurance, or be part of mixed life insurance.

Notes

Who can get insurance

The age of the insured at the time of purchasing insurance must be from 18 to 75-80 years. Policies are sold not only to citizens of the Russian Federation, but also to foreigners. It is quite rare for a contract to be refused, but if the client is already on the “black list” due to suspicion of fraud, then refusal is quite possible.

Insurers are also wary of insuring older people, as well as those who already suffer from some serious illness. They may limit the insurance period, add additional restrictions on payments to the contract, or offer higher rates.

The insurance payment can be received by the client himself if he survives to the date specified in the contract, or by his beneficiary, for example, heirs. The money is paid in a lump sum or in the form of an annuity (monthly payments), depending on the terms of the policy.

How to draw up a life insurance contract

To sign up for a life insurance contract, you must select an insurance company and an insurance program. This must be done very responsibly, since a very long-term cooperation is expected, which means that the company must have a stable position in the market and a good business reputation.

To sign the contract, it is enough to provide:

passport of a citizen of the Russian Federation or a citizen of a foreign state;
application form for insurance.

Additionally you may request:

employment certificate or tax return;
medical examination report;
special questionnaires on the pathology/disease stated in the questionnaire;
protocol of the operation (if there was one);
discharge summary at the place of receipt of medical care;
results of endoscopic, electrophysiological research methods, ultrasound, tomography, x-rays, 24-hour blood pressure monitoring and ECG.

The policyholder is obliged to inform the insurer in a questionnaire application of the circumstances that are significant for determining the likelihood of the occurrence of an insured event and the amount of possible losses from its occurrence, and also provide, upon his request, certificates of health.

A life insurance contract is always drawn up in writing after all the documents have been reviewed and the insurer is ready to sign it.

Survival insurance rates

The cost of a life insurance policy averages from 5 to 30 thousand rubles per year, but there are also companies that set the minimum level at 50-60 thousand rubles per year. Tariffs are calculated individually depending on the client’s age and gender, insurance period, risk to life from professional activities, and health status.

But first of all, the size of the amount that the client plans to save is important. For example, if it is a million after 10 years, then this amount is divided over the entire insurance period. The maximum terms of life contracts are usually 25 years, less often 30-40 years.

Insurance cost

During the term of the contract, the policyholder has the right to reduce the sum insured. If, for example, family income has fallen, the program may be revised and insurance payments and amounts reduced. Contributions are paid in a lump sum, quarterly, semi-annually or annually (most often).

Notice and payment periods

The insurer must be notified of the insurance event within the time period specified in the contract. Usually it is 30-45 days. Along with the application for payment, documents confirming the occurrence of the insured event are also provided.

Upon survival, 100% of savings are paid plus additional investment income, which is recalculated based on the insurer’s investment results, the amount of reserves, as well as arrears in payment of insurance premiums.

If the insured person dies during the policy period, then his heirs are also paid 100% of the insured amount with the income accrued on the day of death. The amount of insurance payment can be differentiated depending on the causes of death of the insured. For example, if a client died as a result of an accident, then his heirs can receive up to 300% of the insured amount, if this is stipulated by the contract.

Pros and cons of life insurance

Life insurance has many advantages. Upon survival, the insured receives not only savings, but also guaranteed investment income (usually at least 5% per annum). In the event of sudden death, all accumulated funds will be received by his relatives.

Benefits of life insurance:

protection of capital from depreciation;
inviolability of money in case of divorce, confiscation;
the ability to select the insurance currency;
tax deduction for long-term contracts (from 5 years).

Disadvantages of life insurance:

unfavorable conditions for terminating the contract;
possible insurer bankruptcy and loss of capital;
a large number of exceptions to payments.

There is essentially one drawback to life insurance: loss of access to your money for a very long time. If you put money on deposit, you can withdraw it on any day or in case of a large amount in 2-3 days, but in the case of life insurance this is impossible.

The client is only entitled to the so-called redemption amount, which is not equal to the transferred amount of money. For example, six months after the conclusion of the contract it is equal to 75% of the accumulated savings, and closer to the end of the insurance period - 98%.

The right to the redemption amount arises provided that the agreement was valid for at least six months. If you apply for termination of the policy earlier, the insurer will simply refuse to return the money.

Another drawback is the possible flight of the company from the market or its bankruptcy. No one is insured against such risks, but if you choose the right insurance partner, a survival policy can become a very useful tool for protecting your family from possible risks and forming basic capital.

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Survival insurance is a type of life insurance. “Survival” means that a person insures himself in order to live to a certain age or event. The insured amount is paid after the end of the contract term.

Many people consider the advantage that you can insure not only yourself, but also your family and friends. These can be both citizens of the country and foreigners permanently residing in Russia, as well as stateless persons.

Basic insurance conditions

The policyholder must pay regular premiums until the end of the insurance contract or until his death. Depending on the contract, the insurance period can be from five to twenty years.

Experts call life insurance the first combined type of insurance. It includes both a term life insurance contract and provides an additional payment in case of the insured’s survival until the end of the contract date. To put it in simple words, the type of insurance described is a kind of savings system. The minimum age of the person in respect of whom the contract will be concluded is one year, and the maximum is 72 years. At the end of the contract, the age of the insured must not be more than 75 years.

Life insurance premiums and payments

The amount of insurance premiums will depend on the amount insured. The frequency of payments may vary: from once a quarter or once every six months, to once a year. Some people who have already taken out this type of insurance have paid a one-time premium for the entire period. But for this you need to have certain means.

This policy is a kind of investment of your money for the future. At the same time, you can not only save money, but also increase it by a certain period. A person is also insured against the risk of death or accident.

An example of investing with life insurance

Let's say that over the course of fifteen years a person decided to save 500,000 rubles. At the time of conclusion of the contract, the person is 45 years old. Insurance premiums for this amount of insurance will be 30,000 rubles per year. If a person survives until the expiration of the insurance period, he will receive an amount of 620,000 rubles (yield percentage 6). If a person dies during the contract period, the company will pay the amount of insurance premiums that have already been paid.

Many people recognize life insurance not so much as good insurance in case of death or trouble, but as an investment for their money. You can compare this type of insurance with a bank deposit. But there is much less red tape, and in the event of death it will be much easier to get money.

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Life insurance involves - by definition - two initial risks: survival (until some age or event) and death, which is considered either as an alternative to survival, or as an additional risk factor (mixed type of insurance - for survival and in case of death at the same time).

The basic characteristics of standard types of life insurance are rates (net and gross) and premium reserves.

The calculation of net rates for life insurance (as well as pensions) is based on two initial models that characterize the mathematical equality of the financial obligations of policyholders and the insurer when concluding contracts for survival and in the event of death. The left side of these models shows all probable and discounted premiums of the policyholder, and the right side shows all probable and discounted payments of the insurer. The policyholder pays his money if he survives until each subsequent year, and the insurer pays either when the policyholder survives or in the event of his death. Each payment is correlated with the insurance amount accepted (conditionally) for the Unit (i.e. for 1 rub., 1 dollar, etc.).

The probabilistic values of the modern cost of mutual payments between the policyholder and the insurer for life insurance are determined from the equality:

1+1pxv…+…n-2pxvn-2+n-1pxvn-1=1pxv+2pxv2…+…n-1pxvn-1+npxvn (1)

where is the discount factor;

px is the probability of survival of the policyholder and the corresponding probability of paying money for each of the counterparties in the amount of 1 monetary unit (hereinafter - MU);

P- the number of years the policyholder lives (from 0 to 100 years).

The probabilistic values of the modern cost of mutual payments between the policyholder and the insurer for death insurance are determined from the equality:

1+1pxv+2pxv2+…+n-2pxvn-1=qxv+1|qxv2+…+n-2|qxvn-1+n-1|qxnn (2)

where the right side uses the probabilities of death of the policyholder and the corresponding probabilities of payments by the insurer in the event of the death of the policyholder.

Based on these equalities, tariff rates for death insurance are calculated.

Calculation of payments for life insurance

Let us determine the size of the policyholder’s one-time premium at the age of x years, if upon survival to x+ P years, he must receive 1 unit from the insurer. Let us denote the size of this premium by the symbol inf. Since this premium is introduced unconditionally, the corresponding probability is equal to one. Therefore, if the present value of the premium is equal to inf. then the corresponding probable cost of payment by the insurer is determined as vn*npx, where , l- number of aged people X years. lx+n- number of persons and age X+ P years. From here --. Multiplying this ratio by the value , we obtain a modified equality, which is transformed into the formula

where are the indicators Dx, Dx+n- commutation numbers (Tables 1 and 2).

Table 1. Table of commutation numbers

(fragment, for the number of living persons lx)

Age, x years			Dx=lxvx*

Table 2. Table of commutation numbers

(fragment, for the number of deceased persons dx)

Age, x years			Cx = dx vx+1*

The table data is compiled at an interest rate i= 3%.

For example, To a 40-year-old policyholder, according to the terms of the contract, the insurer is obliged to pay the insured amount only if he survives to 45 years. At a rate of 3%, the lump sum premium that the insured must pay upon concluding the contract is equal to:

The number 0.8455 is the tariff rate for persons aged 40 years who are insured for survival to 45 years. Its value is also determined using commutation numbers (Table 1):

If the insured amount under this contract was 300 rubles, then the policyholder must pay 254 rubles. (300 0.8455).

If the policyholder makes a one-time contribution, the insurer can pay 1 unit each. annually for the entire life of the insured from the moment the contract is concluded (or - as a pension - after some time). In this case, the size of the one-time premium must correspond to the modern value of all probable payments the insurer makes at the end of the period (post-numerando):

Where Nx+1= Dx+1 + Dx+2 + Dx+з+… - commutation number. It is obtained as a result of the accumulation of values Dx from bottom to top of the mortality table. Nx values for some ages are given in Table. 1.

For example, The policyholder is 40 years old. then the insurer can pay for life but 1 unit. at the end of each year, provided that the one-time contribution is:

When lifelong payments are deferred for n years and paid by the insurer at the end of each year (postnumerando), the size of the lump sum contribution is determined in accordance with the equality:

For example: Let’s assume that the insurer agrees to pay the policyholder 1 unit. for life not from the date of payment of the premium, but after five years.

In this case, the one-time contribution of the policyholder whose age is 40 years old should be:

Under an insurance contract, the policyholder can pay premiums not at once, but periodically. To ensure that the equality of liability of the two parties under the contract does not change, the current cost of probable payments by the policyholder is reduced to a lump sum contribution.

The amount of the periodic contribution is determined by the formula

where αх – annual payments of the policyholder

The numerator and denominator of this formula are modified depending on the conditions for payment of the insurance amount by the insurer.

For example, The net rate for policyholders whose age is 40 years old and who have entered into an agreement to live up to 45 years is determined as follows. The size of the policyholder's one-time contribution, which is replaced by periodic payments, is equal to Since, according to the terms of the contract, it is assumed that the policyholder will pay until the age of x + n years, then when payments are made at the beginning of each period (prenumerando), their modern value is the difference between the immediate life annuity and the deferred annuity prenumerando:

Hence the size of the annual net premium is equal to:

According to the example

If a life insurance contract is concluded for the amount of CU 300, then the annual premium will be CU 54.

Calculation of payments for death insurance

The net rate for death insurance is also determined using tables of commutation numbers. Let's look at life and term death insurance. For a person whose age is x years, the probability is moderate, within the next year of life is equal to, and the probability of dying within (n+1) years is equal to:

With life insurance in case of death, the policyholder's lump sum contribution must be equal to the sum of all probable values of the insurer's payments at their modern value. Formula (7):

where Mx and Dx are determined from the table of switching numbers (Tables 1 and 2).

For example, The net premium for life insurance in case of death of persons aged 40 years is equal to If the contract in the event of death is concluded in the amount of CU 1,000, then the one-time net premium will be CU 370. Whenever the policyholder dies, the insurer will pay CU 1,000.

In order to prevent persons with poor health from entering into the contract (i.e., increased mortality in the first years after the conclusion of the contract), the payment of insurance amounts in the event of death of the insured can be postponed for any number of years from the date of conclusion of the contract. Due to this, the countdown of the commutation number L/ is also postponed for the duration of the installment plan, and the calculation of the one-time net premium is made according to the formula

For life insurance in case of death, the annual net premium is equal to:

(9)