A service such as insurance of children under adulthood helps to make a certain contribution to the coming of age of the child and provide him financially in case of an adverse situation. It is quite popular among policy buyers.
This type of insurance in our country is relatively new. It is most prevalent in large cities, although it is used little throughout the country. It is believed that along with an increase in the well-being of Russians, child insurance until adulthood is becoming more popular.
The concept of this service
A key feature is the different identities of the policyholder and the insured. In the first case, parents act, and in the second, respectively, children. The contract may also be concluded with legal adoptive parents, guardians or other relatives of the minor. After the death of the insured, his rights are transferred to other persons who will protect the interests of the insured.
The contract is for insurance of children from 1 year to adulthood, its second party must be between the ages of 18 to 60 years. The company, according to him, is obliged to pay the insured appropriate payment upon the occurrence of a particular case.
There are three key groups of policies for children:
- cumulative;
- medical;
- risky and others.
Below we consider some types of them in more detail.
Policy Classification
Insurance of children until adulthood is made on a voluntary basis by his parents or older relatives. Also, besides him, there are such types:
- MHI and VHI - mandatory or voluntary health insurance. In the second case, the policy provides for the possibility of treatment and services in paid institutions, but its cost is quite considerable. The first is funded by the state and does not give any additional guarantees regarding the quality of service.
- The policy of newborns is a form of VHI for children up to a year.
- Life insurance against accident or illness and other funded programs.
Many parents set the main goal of acquiring such a policy to save money by the age of majority of the child.
How the contract works
Insurance of children until adulthood is based on a document. Such an agreement contains a list of risks that the insurer is not recognized if occurred with a minor over 14 years old. If the child has not yet reached this age, then the payments remain valid.
The amount of insurance is agreed individually by the insurance company and the client. Contributions for documents are determined by the initiator of his conclusion. The contract is signed on the basis of the application, while the medical examination of the child is most often not required.
Document Termination
Contribution to the child before coming of age is supported by the concluded agreement. It comes into force from the moment of its signing, its action may be terminated in such cases:
- upon expiration;
- if the company has fulfilled all the obligations declared in the document in full;
- if the policyholder does not pay premiums within three months;
- at his request with the return of the deposited funds in full from the company;
- in the event of his death subject to the payment of redemption funds to the beneficiary or the child himself.
After the contract expires, a child who has reached the age of majority must appear in the office by an insurance company with a statement about receiving payment of the amount due to him.He must also attach the following documents to him:
- identification;
- policy;
- documents that confirm the facts of cases that involves child insurance.
How to insure a child under the VHI program?
The acquisition of such a policy, as mentioned earlier, helps to provide high-quality services in paid clinics, taking into account the wide range of services during the entire period of its validity.
According to him, the child may be provided with the following:
- emergency medical assistance;
- dental services;
- service at the pediatrician;
- hospital treatment;
- outpatient examination;
- vaccination.
Under this program, children under the age of majority insurance may include all of the listed activities, as well as individual ones, for a certain number of times or for unlimited service. Each type of policy has a different cost.
Features of endowment insurance
Such a policy is relevant if the parent or other relative of the child plans to pay for his education in the future, as well as to purchase a house or a car. A similar program is a cross between insurance and bank deposits. Its essence is as follows: its initiator is obliged to contribute funds within the time prescribed in the contract, and when the deadline is at an end, he receives them in his hands, taking into account investments.
In this case, the insured party may be not only the child, but also the adult himself, but the minor will still be the beneficiary. So, in the event of the death of a parent or relative who has entered into an agreement, he will still receive the amount due to him, if everyone is safe and sound, this will happen when the contract with the company expires.
Refuse payment insurance amount it can only when the other side intentionally does harm to itself in order to receive it in advance.
Advantages and disadvantages of deposits
The advantages of endowment insurance programs for children are obvious: first of all, high prices for real estate and education. Therefore, many parents prefer to take care of these benefits for their children right from birth, so that when they come of age they can move into their own apartment, buy a car or pay for higher education.
Also a huge advantage of such insurance is their term. During this period, you can put impressive funds into your child’s account and, unlike short-term bank deposits, you won’t be tempted to withdraw them and spend them for other purposes.
There are disadvantages to this type of insurance. For example, in case of child insurance, rather high taxes are levied when a child receives a specified amount upon reaching a specified age.
Features of insurance of children under adulthood in Russia
Since such a program is not yet too widespread throughout the country, many relate to it with little caution. Others do not even know if there is insurance until adulthood.
The sale of policies in this area is constantly growing mainly due to VHI. Over the past five years, children's health insurance has become more than 300 percent in demand. Experts look at this with optimism and associate it with the general increase in the well-being of citizens who are willing to invest in promising services for their children.
The average cost of a children's insurance contract today is from 50 to 100 thousand rubles. But there are practically no restrictions in terms of specifying certain amounts in it. Policies for even quite impressive amounts will not be too costly. In particular, it is possible to insure a child under 16 at a rate of only one percent of the figure indicated in the contract.
If you, as parents, wish to purchase the same medical policy or from an accident for your schoolchild, it’s best to do it together with the parents of his classmates.Collective child insurance will be much cheaper.
Payment in connection with a particular case, the company can make only when it receives the original document, which can confirm it. For example, a certificate from the clinic. The total amount is far from always laid to the recipient of funds, it all depends on a particular risk. For example, when a finger is cut, parents can count on three percent of the figure prescribed in the contract, if the child breaks his leg, then six percent. The entire amount can only be paid in case of death or disability.
Naturally, the existing system of insurance of children up to adulthood has its pros and cons, it suits someone, but it does not suit someone. Thus, it is possible to help a minor in a difficult situation financially or to provide quality medical care. The insurance market does not stand still and new attractive programs are offered to clients, in particular, concerning children.
