The most valuable thing a person has is his life, so it is natural to take care of her safety and protection from unexpected problem situations. Today, insurance in general and life insurance in particular is one of the means of social protection of citizens. However, practice shows that despite the growth and development of this industry in our country, life insurance is still very popular and raises many questions among the population. Ignorance, as a rule, generates mistrust. Let's try to understand what life insurance is, what risks it protects and how to hedge.
What is life insurance?
Let's try to briefly and most clearly explain the essence of this type of insurance. Life insurance is associated with the obligation of the insurer in exchange for paying insurance premiums to pay a certain amount of money (insured amount) to the insured or to the persons indicated to them in the event of the death of the insured person or his survival up to a certain period. In this case, the cause of death of the insured person can be both an accident and a disease.
In addition, you can additionally be insured against disability and disability as a result of an accident, so that you have something to restore strength, if suddenly an accident will undermine your health.
Who can be insured?
The life insurance policy can be purchased both in respect of one's own life (then the insured and the insured will be one person) and the life of a person close to you (then you will be the insured, and your insured will be your close one).
How much does it cost to insure the life?
Insurance premiums (insurance premiums) depend on the age of the person who wants to hedge, on his profession and state of health, on the amount of the insurance amount and the insurance period.
Types of life insurance
Depending on the purpose, life insurance is usually divided into two categories:
Urgent (or risky) life insurance. It is one of the most simple and inexpensive programs. In case of death of the insured during the agreement period, the heirs (or other beneficiaries under the policy) receive payment in the amount of the insured amount stipulated in the policy. There are no payments at the end of the insurance period. The agreement is concluded for a period of one year and can be prolonged.
Universal life insurance is an opportunity to save and save money for a certain date / event in combination with insurance protection. The payment of the insurance amount is made in the event of the death of the insured person during the agreement period, or at the end of the period, if the insured person lived to see it. The insurance agreement is concluded for a long period (from 3 to 20 years), which allows for the formation of substantial savings from relatively small contributions. The agreement of accumulation insurance provides for the accrual of guaranteed income for savings, and, in some cases, the possibility of obtaining additional investment income.
In accumulation insurance, it is possible to terminate the insurance agreement ahead of schedule. In this case, the insured is paid a redemption amount - this is the current value of the insurance policy, which the insurer pays to the policyholder who wishes to terminate the agreement. The amount of the redemption amount is indicated in the policy as of the end date of each insurance year, taking into account that all insurance premiums for the dates indicated have been paid in full. The redemption value usually appears after the second year of the agreement and increases every year. By the end of the insurance period, the redemption amount is equal to the sum insured.
How to insure?
To buy a life insurance policy is quite simple. The only condition is that before signing the agreement it is necessary to fill out the insurance application, choosing the type of protection, the term of insurance and answering a few questions about the state of health and lifestyle. And here it's better not to be cunning: if you hide information from the insurance company that the insured has serious illnesses or is engaged in extreme sports, then in the event of an insured event in payment, they can refuse.
The insurance agreement is concluded in writing by joining the insurance rules and issuing an insurance policy.
It is important to remember that the insurance agreement comes into force and becomes binding on the parties provided that the insurance premium is paid.
Where to insure?
Life insurance services can only be provided by companies that have a license for this class of insurance in Kazakhstan. 7. The most important thing when choosing an insurance company should be not so much favorable conditions as its reliability, because when you buy insurance, you expect to provide yourself with material support in a difficult life situation or accumulate money by a certain date. In addition, life insurance agreements are often concluded for a long time.
Why should you insure your life?
Usually, when it comes to life insurance, people for some reason are greatly frightened, become superstitious and try to brush it off with the words "God forbid". Nevertheless, the life of any person is vulnerable, everyone can be at the mercy of complex circumstances, from which neither prudence, nor protection, nor good physical preparation will save. In this case, the only thing you can do, having provided yourself and your relatives at least the confidence that you can alleviate the consequences of an unforeseen coincidence of circumstances is to purchase insurance in advance. Life insurance becomes a guarantee that in a difficult situation your family will not remain without financial support.
A person who does not understand the need for life insurance thinks about the future, while health problems can occur suddenly, and may require considerable money for treatment. Of course, with acute need, you can always apply for a loan. But is it worth to take on, among other things, a heavy burden in the form of a debt that can be dragged on for an indefinite period and it is not known whether there will be a possibility to pay it afterwards?
So what does life insurance require? To feel yourself financially secure and provide yourself and your family with help during difficult periods of life. And if you have a question, to insure or not to insure your life, then the answer is obvious.