No one has absolute protection against troubles that may appear like thunder from a clear sky and disrupt the established course of life. It is impossible to predict their offensive, but there is a way to meet fully equipped. Personal insurance is one of the key industries, the priority of which can be called life and well-being of a person.
The essence of personal insurance
The concept of the personal is usually attributed to a complex of different types of insurance aimed at the possible onset of specific events in human life. It represents the protection of material interests in the event of events predefined by the contract at the expense of the insurance company.
From an economic point of view, we are talking about the redistribution of funds formed by insurance contributions of all who wish to protect themselves and their family from adversity in this way. Health, ability to work, human life and all related property interests are the main objects of personal insurance. Payments under the contract here are not compensation for damage, but material assistance to the insured and their families in difficult life situations.
The origin of this phenomenon was the relationship between the employee and the employer, mainly in terms of disability. Due to the improvement of technology, industrial injuries are gradually being replaced by household and transport injuries, the incidence and mortality of people of working age remains at the same level. The issue of pension provision of citizens does not lose relevance.
Key Features of Personal Insurance
Being an independent industry, personal insurance has a number of features:
- High social importance. It serves as a guarantor of receiving medical care, as well as a mechanism that helps maintain an acceptable standard of living in the event of disability.
- Only a specific person can act as an insured. Unlike other types that can work with the interests of organizations, personal insurance is aimed at individuals.
- The specificity of the objects. Life, health, and ability to work are intangible forms whose value cannot be determined. Therefore, the assessment of the damage caused by the occurrence of the insured event does not make sense.
- Long-term contracts. Some types of personal insurance are characterized by long-term contracts, while this is unacceptable for property or liability insurance.
Typology
The classification of this insurance industry can be carried out according to several parameters.
Depending on the period of validity of the contract:
- Short-term insurance (up to a year).
- Medium-term (from 1 to 5 years).
- Long-term (over 5 years).
Depending on the form of subsequent payments under the contract:
- With one-time payments.
- With periodic payments.
Depending on the number of persons insured by a specific contract:
- Individual.
- Collective.
Depending on the nature of the payment of insurance premiums:
- With a one-time deposit.
- With annual payments.
- With monthly payments.
Depending on the extent of liability, the following may be insured:
- Death or survival.
- The onset of disability or disability.
- The provision of medical care.
The last classification item represents the main types of personal insurance, dividing it into sub-sectors, such as mixed, medical, pension, funded, as well as life insurance, survival, illness and accident insurance.
Forms
The current legislation determines that property and personal insurance in our country can be carried out in two forms - voluntary or mandatory. Let's consider each of them in more detail:
- Mandatory personal insurance Subject to specific federal laws. According to them, insurance companies participating in this program do not have the right to refuse citizens or organizations that apply to them. Currently, compulsory insurance programs for employees of certain industries and services are operating in our country, and for everyone else, compulsory medical insurance is available.
- Voluntary personal insurance a citizen may be held on the basis of his free will. Such a policy usually costs more, but contains more opportunities for the insured. In order to become its owner, you must resort to the services of any insurance company. It must be borne in mind that her representative has the right to refuse extradition if she doubts the reliability of the person who has contacted him.
Specificity
A personal insurance contract can be concluded with an individual or legal entity, fixing the moment of the beginning of legal relations between him and the company. For example, any organization that voluntarily or in accordance with the law decides to protect the individual interests of its employees can act as the insured. In this case, the contract is concluded with the consent of the insured.
Property and personal insurance provides that by the time of the signing of the primary transaction document by its parties, all key conditions should be agreed and taken into account in the text, namely:
- Contract time. The start and end dates of its action are fixed.
- List of insured persons. Failure to submit the list of insured as an annex to the contract may serve as the basis for invalidating it.
- Rights and obligations of the parties to the contract. Apart from the insured, the insured and the insurer, other persons or organizations may also act as the latter (depending on the type of personal insurance).
- Recruitment and content of insurance claims. It is determined by the type of contract to be concluded.
- Regulation of payments and contributions. A feature of personal insurance is the fact that, for example, the employer pays the premiums under the contract, and the employee receives them.
Life insurance options. Death insurance
The interests of the insured person that are directly related to his life are the subject of this sub-sector, which includes personal insurance. Life insurance is divided into three main categories: in the event of a citizen’s death, surviving to a certain point, a mixed type. It must be borne in mind that the conclusion of such contracts can be carried out if the policyholder is interested in the insurance object. For example, for a citizen, his own life is important, for the employer - the life of an employee, for a creditor - a debtor.
The death contract may be concluded by the policyholder in relation to himself or other persons with their written consent. Sum insured in this case, paid upon confirmation of the death of the insured. This type of personal insurance has its own varieties, namely:
- Lifelong. Here, the insurer will be required to fulfill its obligations in the event of death, whenever it occurs. The size of the tariff varies depending on the gender, age, level of health, type of activity of the insured. Pay insurance premiums here it can happen both simultaneously and periodically.
- Urgent. In this case, an essential parameter is contract time. If the insured person does not live to see it end, its representatives receive appropriate payments. Personal insurance of citizens of this kind provides for the conclusion of an agreement for a period of 1 to 20 years. The maximum figure is limited to the age of the insured person at 65-70 years. Here, the tariffs also depend on the physiological characteristics of the citizen. Their overall level is lower than with the lifetime option.
Survival insurance
Personal insurance of this type consists in the fact that a citizen receives his legal payments upon surviving to the agreed date. The total amount consists of the insurance premiums paid and the planned income from their investment. In a situation when the insured dies, payments are not made, and the policyholder receives the previously paid contributions. Survival insurance is divided as follows:
- Pension. The main feature is the periodic implementation of insurance payments. When a citizen reaches retirement age, the insurance company is obliged to make regular payments in his favor as an addition to social pension benefits. The amount of insurance premiums depends on the gender, age and desired size of the future pension.
- With the condition of payment of rent. The organization of personal insurance of this type provides for the right to choose the period for receiving insurance rent. The total amount is calculated separately for two events - the death of the insured and survival until the end of the contract. The following may be considered as insured events: death during the term of the contract, surviving to the date of termination of its validity or agreed terms.
- Marriage related. Insurance case marriage registration or survival to a certain point before which the marriage was never concluded is recognized. Thus, parents usually insure children under 15 years old.
- Children. In this case, the insurers are the parents, and payments are made upon the death of the child, surviving to a certain age, causing damage to his health.
- Savings or savings. Insurance contributions here are made by installments, in connection with which the analogy with a deposit account in a bank is traced. The conclusion of such an agreement does not require medical confirmation of the state of health and filling out questionnaires.
Mixed insurance
This type combines the two previous options, and may also include health and accident insurance. Calculations for personal insurance of this type are made in both cases: the death of a person or surviving to a certain point.
Amounts paid in case of injury to health are differentiated in proportion to the degree of disability. In the event of disability, the contract continues. In special situations, benefits may be granted in the form of full or partial exemption from insurance premiums.
Payments upon the occurrence of death are made if suicide or alcohol, drug intoxication is not recognized as its cause. Their size also depends on the circumstances that caused the death of the insured: in case of an accident, triple the amount of insurance payments, in case of an accident - double, in all other situations - single. Amounts are paid at a time after confirmation of the fact of the insured event.
Health & Accident Insurance
This type of insurance is intended to provide financial support in case of loss of health or death of the insured person. It can be carried out in two forms - mandatory and voluntary.
In our country, the following types of compulsory insurance of this kind are valid:
- Industrial accidents and occupational diseases. This type of personal insurance considers the property interests of workers who have health problems, injured, lost their ability to work, and died as a result of an industrial accident. The legislation obliges all employers without exception to carry out this type of social protection for their employees. The Federal Insurance Service is responsible for its implementation, where insurance premiums are sent. This organization is engaged in the annual development of new tariffs. The insured event here is a confirmed fact of harm to health, death as a result of an accident or occupational disease. The employee is guaranteed the provision of temporary disability benefits, lump-sum and periodic insurance payments, and the repayment of additional expenses.
- State insurance programs life and health of employees of certain categories. Such privileges are granted to employees of the prosecutor's office, tax inspectorate and the Ministry of Internal Affairs, deputies, military personnel, astronauts and others. The amount of insurance payment for an employee is calculated based on his salary. To engage in this type of activity, the insurance company must have the appropriate license.
- Personal passenger insurance. This includes intercity and tourist air, rail, road, and water transport. A legal contract is concluded between an insurance and a transport company representing the interests of passengers. In this case, the contribution amount included in the ticket price is paid by the citizen himself. Insurance is paid out in the event of personal injury or death as a result of a traffic accident.
Voluntary accident insurance provided by an individual will be extended to members of his family. An organization that wishes to protect persons of material interest to it may act as a policyholder. There are a lot of types of such insurance: individual and collective, full or partial, for adults or children.
Upon the occurrence of an insured event, the insured or his representative can count on the following types of coverage:
- Financing the medical care provided.
- Daily allowance in case of temporary disability.
- Material benefits for disability or death.
Health Insurance Features
Personal health insurance refers to a special kind of insurance, the purpose of which is to provide guarantees for qualified assistance when necessary. Its key subjects are the insured, the insured, the insurance organization and the medical institution. Usually exists in two forms.
Compulsory insurance as part of state social activity is designed to provide citizens of the Russian Federation with a certain minimum set of services provided by medical institutions operating under the federal program. Non-working citizens are insured by the state, working - by the employer. Not all companies are capable of issuing medical insurance policies, but only those licensed for this type of activity.
Voluntary insurance is able to provide assistance in excess of state guaranteed volumes. Its object is the risk associated with the amount of costs that may be needed in a particular case of treatment.
Here we have the conclusion of two types of agreements between the parties:
- The policyholder and the insurance company. In accordance with it, the latter should organize and finance the provision of medical services to insured citizens.
- Insurance company and medical institutions. The terms of personal insurance under such an agreement oblige the latter to provide the necessary assistance to all persons on the list of attachment.
