Death insurance 101（1）
Death insurance, also known as survivor insurance, refers to a social insurance system in which dependent relatives of the insured receive material assistance from society after the death of the insured or after the death of his assigns.
Death insurance is a type of life insurance which is based on the condition that the insured person dies during the insurance period to pay the insurance premium.
The insured includes employees and those who have received pension insurance treatment. In the social insurance system, death insurance has a certain cross relationship with old age insurance, insurance against accidents at work and health insurance. Therefore, relevant laws and regulations are also more common in comprehensive social insurance legislation.
In the social insurance system, with death insurance, after the death of the insured or after the death of his dependents, the insured can obtain material assistance from the company. Death insurance has a certain cross relationship with old age, workers' compensation and health insurance, so relevant laws and regulations are also more common in comprehensive social insurance legislation .
The insurance benefits of death insurance consist of two parts: 1. The material assistance provided to help overcome the financial difficulties encountered by the burial of the deceased is generally called funeral grants or funeral expenses. 2. The material assistance provided to ensure that the deceased leads the basic life of his loved ones before his death is generally called a survivor's pension. The payment standard is stipulated by national law.
Types of insurance
Term life insurance
Term death insurance is traditionally called term insurance, which means that during the period stipulated in the insurance contract, if the insured has a fatal accident, the insurer pays the insurance money in accordance with the provisions of insurance contract. If the insured is still alive at the end of the insurance period, the insurance contract is terminated immediately and the insurer has no obligation to pay and will not reimburse the unpaid insurance premium.
The term of insurance for term insurance is generally 1 year, 5 years, 10 years, 15 years, 20 years or 30 years. Generally, the person insured for term insurance does not exceed 65 years of age at the end of the contract. The insurer may also provide specific policyholders with fixed-term insurance with an insurance period of less than one year at the request of the insured, such as fixed-term insurance with a period of several months or weeks.
Most insurance clauses in term insurance stipulate that the insurance liability assumed by the insurer begins at 12 a.m. the day after the insurer agrees to take out, collect the first stage premium and issue the policy, until the termination of the contract.
Since regular premiums are mainly calculated based on the probability of death of the insured, there are very few savings factors and the duration of the insurer's responsibility for the risk of death is fixed. Provided that the amount of insurance is equal, the premiums for regular insurance are low As with any other type of life insurance, term insurance can offer greater protection at a lower premium. For this reason, the risk of adverse selection from regular insurance is greater. When the insured feels or suffers from physical discomfort or increased risk, he often insures himself for a larger amount of regular insurance. In order to control responsibility for the risk and ensure the stability of the business, the insurance company must often strictly insure the insured, for example, a strict medical examination of the insured with a high amount of insurance; The insured person applies a higher rate.
If the insured dies within the time limit, the insurer pays the beneficiary the insurance money. If the insured survives the expiration, the insurer will not be required to pay the insurance premium or the reimbursed insurance premium.
The main features of term life insurance are:
Insurance premiums are relatively low. Since term life insurance does not contain savings factors, the insurer has a certain amount of time to assume responsibility for the risk. So, provided the amount of insurance is equal, the term life insurance premium is lower than other life insurance and can get better protection.
The insurance period can be extended. Many insurance companies allow ent that policyholders extend the insurance period regardless of their state of health when the insured person does not have to undergo a medical examination at the end of the insurance period.
The type of insurance can be changed. There are also many insurance companies that stipulate that the insured person has the option of converting term life insurance to life insurance or two-way insurance regardless of their state of health. However, this option can generally only be exercised during a prescribed changeover period, for example before the age of 65.
Insurance companies have relatively strict choices for the insured. In life insurance, people in poor health or at higher risk are often actively insured for larger amounts of term life insurance. In order to keep underwriting risks within the control range, insurance companies generally choose to insure customers: complete and in-depth health checks on the health of insurers who exceed a certain amount of insurance; slight health or some kind of danger Insurers who work increase fees; they refuse to insure those who are older and less healthy.
Those who are better able to choose term life insurance are: those who do more hazardous work and need short-term protection; and those who are in a poor family economic situation, whose children are still young and who are the main source of the family economy. For them, term life insurance can get the maximum amount of protection with the lowest insurance premium. On the other hand, term life insurance has no savings or investment income.
Life insurance for life, also called life insurance for life, is insurance that provides protection for life. In the event of the death of the insured during the period of validity of the insurance, the insurer will pay the sum insured to its beneficiary. Life insurance can be divided into ordinary life insurance and special life insurance.
The distinguishing feature of lifetime life insurance is that the policy has a cash surrender value and the policy owner can either buy it back halfway and receive the surrender premium, or borrow within a certain limit. surrender value of the policy, which represents a strong saving. The life insurance rate is therefore higher. In order to close the gap in the ability to pay of people of different ages, a method of formulating a balanced premium rate is often adopted.
Life insurance for life is simply called life insurance or life insurance, which is unexpected death insurance. The insurance period of life insurance runs from the moment the insurance contract takes effect upon the death of the insured. The insurer is responsible for the life of the insured. Regardless of when the insured dies, the insurer pays the death insurance money in accordance with the provisions of the insurance contract. Usually, the age of the insured is limited to 100 or 105 years. If the insured is still alive at the age of 100 or 105, you can also receive a life insurance premium. The biggest advantage of lifetime death insurance is to provide the insured with permanent protection.
Depending on the payment method, life insurance can be divided into regular life insurance, limited payment life insurance and life insurance.
Ordinary life insurance is also called life insurance for life. The policyholder pays insurance premiums regularly (usually on an annual basis, or semi-annually or quarterly or monthly) according to the contract until the insured dies.
Life insurance with a limited payment period refers to a type of life insurance in which the policyholder pays the insurance premiums on time according to the payment period agreed in the contract. 'insurance. There are generally two situations: first, the payment period is agreed to 10 years, 15 years or 20 years, at the discretion of the insured; and second, the payment is limited to the time the insured reaches the age of 60 or 65. With the same amount of insurance, the longer the premium payment period, the less the policyholder pays premiums each time and vice versa. In life insurance, many people apply for life insurance with a limited time.
Long-term life insurance designates the policyholder who pays all premiums in a single payment at the time of the insurance application. Long-term life insurance can prevent the expiration of the policy due to the suspension of payment, but since the premium has to be paid once, the amount is important.
Regardless of term insurance or life insurance, the insurer does not pay not the death of the insured for all the reasons. The policy stipulates the responsibility for exemption which does not bear the responsibility for payment, such as the insured person, the beneficiary intentionally injured or killed the insured; the insured has deliberately committed a crime or refused to stop, has intentionally injured himself; the insured took, smoked or injected drugs; The insured commits suicide within two years of the effective or reinstated date of the contract; war, military operations or armed rebellion; nuclear explosion, nuclear radiation or nuclear pollution.