A life insurance policy can be in term or endowment form. In the first case, the insurance contract provides for payouts in the event of the insured person’s death, loss of ability to work, injury, or critical illness. Payouts are made if the insured event occurs during the insurance period. No payments are made upon termination of the term insurance contract. Term insurance contracts are concluded for a period of one year.
“The accumulative form of life insurance provides, among other things, for payment at the end of the contract term. Thus, thanks to endowment life insurance policy, an insurance company’s client has the opportunity not only to have insurance coverage in case of the occurrence of any unpleasant event but also to form savings in the medium-long term, as endowment insurance policies are usually concluded for a period from 3 to 20 years,” explains Ramai Kurbangaliyev, director of the retail sales development department of LIC Eurasia.
Who is the product intended for?
“For the majority of customers of endowment programs operating in accordance with the above algorithm, insurance policy is the best option for accumulating a more or less large amount in small contributions, while having insurance coverage. Endowment policies are most commonly purchased in order to save up for some important event in the future: such as higher education for children, overseas trips, large purchases, or formation of pre-retirement savings,” Ramai Kurbangaliev clarifies.
The mechanics of term insurance contracts are often used to insure life and work ability of loan borrowers. Upon the occurrence of an insured event, the client’s debt to the bank is repaid through payments: in full in the event of client’s death or in accordance with the loan repayment schedule if the borrower has become disabled.
Choosing a product
When choosing an insurance program, note the wording of the insured event stipulated in the agreement: upon the occurrence of which events the insurance organization has obligations to make payments.
“A positive factor when choosing an insurance product is also the availability of additional options in the insurance program, such as, for example, indexation of insurance benefits to the level of inflation or devaluation of the tenge, or possibility of including additional insurance coverage in the policy,” says the director of the retail sales development department of LIC Eurasia.
The speaker believes that it would be useful to compare the cost of insurance policies with similar insurance conditions from different insurance organizations, and to ask the insurance company‘s officer about the availability of promotions for clients when concluding insurance contracts.
“An important factor in choosing the insurance company is solvency rating. It is also recommended to visit the website of the National Bank of the Republic of Kazakhstan and make sure there are no significant violations in the work of the insurance organization recorded by the supervisory authority. Taken together, the answers to these questions will help the future client make the right decision,” the interlocutor believes.
Source: https://prodengi.kz/post/vybiraem-polis-straxovaniya-zizni
Photos are from open sources.
