Human life is an unpredictable thing, and its end cannot be avoided. We all understand and know how hard it is to lose people who were always there. But even more difficult, when death happened suddenly, and no one was ready for this. In addition, funeral expenses exceed the financial capabilities of a deceased person. Of course, you can’t think about the demise and prepare for it all the time. However, it is quite possible to foresee such a development of events. Life insurance in case of death will help you to be prepared at any time for unforeseen circumstances. In addition, having drawn up this agreement, you can protect loved ones from financial problems.
What it is?
Life insurance in case of death is an agreement under which the client is obligated to pay a certain amount of the company in a timely manner, and she in return undertakes to pay money in case of an insured event. In other words, this is a regular insurance program, fundamentally no different. The amount of funds that the company pays is regulated upon signing the contract. Money is given to one or more persons. In the death insurance contract, they are called beneficiaries.
However, before entering into an agreement, company employees must carefully check the customer. This is done in order to assess the likelihood of an insured event. It is imperative to undergo a medical examination, which will show if the person has any diseases. The company checks whether the client is terminally ill. Then the amount of the premium is determined. In order to receive it in the event of a person’s death, it is necessary to fulfill obligations to the company, namely to make payments.
Comprehensive insurance program
Each of us has insured at least once in his life: be it a car, a card, or life. Previously, accident protection was offered. There, the complex included life insurance in case of death and survival. In the event of a sudden death from an accident, the beneficiary under the contract will receive part of the payments that are due to him.
It turns out that the family of the deceased will receive the money, but not in full. Comprehensive insurance does not provide targeted protection in case of death, and this is a serious drawback. The company in this case can only reimburse costs. In general, such protection is not beneficial, since the total amount is very small, in contrast to payments under a life insurance contract in case of death.
Classification
If we take our country as a basis, then in Russia there are three types of such insurance. Let's consider each of them in more detail:
- Urgent. This type of protection is also called survival insurance. The bottom line is that if a client dies earlier than the deadline, the company is not liable for its obligations. At most, the organization may reimburse a small portion of the costs in compensation.
- Lifelong. In this case, there is no term for life insurance in case of death, the agreement is concluded for an indefinite period. Contributions may be paid until the end of life or for a period. This is described in the contract. It is worth noting that if the contributions are lifelong, then compensation will come out much more than in any other case.
- Mixed. This type of protection includes the other two. The insured event is the one that occurred earlier. I must say that mixed insurance is the most popular in Russia.
A few more varieties
The above classification is not the only one. In addition to it, there is also the separation of financial life insurance in case of death, depending on the mass or at the request of the client.
Protection can be individual, when the object is one person, and collective, which insures the entire team. The second type is often used in hazardous industries.
Also, insurance is voluntary (at will) and compulsory (for military and government employees). In addition, when buying a ticket for a train, plane or cruise ship, we agree to a financial protection program. The price is included in the ticket. Sometimes a person is required to insure life, for example, in the process of registering a mortgage.
Who are the program participants?
The contract indicates the persons who are related to this agreement. Life insurance in case of death provides the following objects:
- The insured. In his role is a person who is an adult and has full legal capacity.
- Insurer. This is the organization or company that provides this service.
- Insured person. A person who has reached the age of majority and at the time of termination of the contract (if any) has not reached the mark of 70 years.
- Beneficiary. This may be one or more persons selected by the insurer with the consent of the insured to receive compensation. An important point: during the term of the contract, the beneficiary may change.
The object of insurance can be three situations. Firstly, it is when the customer financially protects his life directly. Secondly, the customer can insure the life of another person. Most often these are parents or children. Thirdly, there is a joint insurance. That is, they protect several people at once, often both spouses.
Terms of agreement
An insured event is of great importance in the contract. Upon its occurrence (death), monetary compensation is paid. The agreement is concluded for no less than a year and no more than 20 years. The insured event is described in the contract and negotiated by the parties.
However, there are those death insurance events after which no compensation is paid. These include:
- suicide, this item is always indicated in any contract;
- cosmetic surgery;
- non-compliance with the therapy prescribed by a specialist;
- the risk to life that a person consciously goes to, for example, extreme.
It is worth noting that payments are assigned as a result of an agreement between the two parties, and the amount is prescribed in the contract.
Life Insurance Rates
First, to find out the cost of financial protection, you need to determine the type of contract. In order to calculate the specific size of payments, special programs are used. They have a mortality table that takes into account the age and number of people killed.
In addition, other circumstances are taken into account. These include:
- Customer gender. Men are always expected to have a greater value than the fair sex.
- Age. Everything is simple here: the older, the greater the amount.
- Lifestyle, whether there are bad habits.
- Risk. It takes into account the person’s place of work and living conditions, the higher the probability of death, the higher the size of payments.
- Duration of the contract. Usually the longer the term, the lower the payments.
- Insurance history.
- The demographic situation in the country.
It must be remembered that death insurance benefits are determined by both parties.
How to arrange?
In general, the contract should be given special attention. You must carefully check everything before signing. Because then it may be too late, the agreement will enter into force. All obligations should be fulfilled, so that in the event of an insured event, receive monetary compensation.
Also, the agreement must specify:
- date, place and time of execution of the contract, register the participants and the validity period;
- detailed genuine information about the insured person;
- insured events;
- a certain amount if this case occurs.
If the above facts are missing or distorted, then the contract is invalid. This situation can lead to unpleasant consequences. In case of cancellation of the agreement, the beneficiary will not receive anything in case of death of the insured. Therefore, all the details must be studied, and in case of violations, everything needs to be fixed. Only when you are sure of the correctness of the contract, sign it.
Required documents
As you know, without the necessary official papers, it will not be possible to draw up an agreement. The following documents should be brought with you:
- passport;
- a completed application on the form of the insurance company;
- applicant's medical report.
In addition, you will need to fill out a questionnaire. It is on its basis that insurance specialists will be able to assess the risks. To receive compensation, the beneficiary must also submit some official papers.
List of required documents:
- a completed application in which you need to specify personal data and information about the current contract;
- original agreement;
- a copy of the death certificate of the insured person;
- medical report describing the cause of death;
- documents confirming the inheritance;
- passport.
Life insurance in case of death in Russia is gaining popularity. Organizations are drawing up more and more such contracts. This is due to the fact that people began to think about their health and do not want to substitute their close friends and relatives when an accident occurs.
Which companies provide life insurance
Currently, Russia has a large number of insurance companies that can provide this service. Those who occupy leading positions have some common features. Among them are:
- a funded agreement is concluded for a minimum of 5 years, a maximum of 50;
- age restrictions - from 18 to 50 years old;
- there is an opportunity to agree on various types of financial protection of human life;
- children's life insurance contract can be concluded for a long period - up to 20 years;
- the protection program operates around the clock around the world;
- the client has the right to independently choose the frequency of making payments: month, quarter or year.
The most popular organizations that provide life insurance services in case of death for a certain period of time are Russian Standard, Alfa Insurance, Sberbank. Each of them can offer various programs, and the client himself chooses what is best for him at the moment.
Conclusion
Life insurance is a pretty serious step, and before you do it, you need to carefully think through and weigh everything. You need to analyze all the advantages that you get and the disadvantages. This type of insurance has many nuances, you should pay attention to this.
It is worth noting that in most cases, financial protection justifies all expenses associated with it. Risk, of course, is also present. If the insured event occurs after the expiration of the contract, you will not receive monetary compensation. It turns out that all investments will be in vain. In addition, carefully read the contract, and only if you agree with everything, sign it. There are scammers everywhere, and you should always remember this. When specifying personal data, you should be very careful not to make a mistake.
Before concluding an agreement, it is recommended to evaluate the offers of all insurance companies and choose the most suitable option.