The following article is the next section we would like to share to help you understand about the Basic knowledge about insurance policies and classification of insurance policies.
7. General provisions in the insurance policy
7.1. Important milestones in the insurance policy
7.1.1. Effective date of the contract
The effective date of the contract is the date on which the policy becomes effective, as set forth in the insurance certificate. The effective date of the contract begins when the insurance buyer completes the claim and pays the initial insurance premium, usually before the date of the contract. The insured person will be insured temporarily from this date.
7.1.2. Anniversary of the contract
Contract anniversary is the annual anniversary of the effective date of the contract
7.1.3. Maturity date
Maturity date is the date the policy ends. Beneficiaries will receive the benefits contracted when the due date occurs
7.1.4. Temporary insurance
Provisional insurance is a term used in life insurance, which represents the period since the insured person completes the insurance claim and pays the initial premium until the contract is issued. . During this period, the policyholder may consider canceling the contract and receiving the full initial premium. When there is a risk occurring during this period, the beneficiary will still receive the same benefits as when insured
Temporary insurance does not apply to suicides, death sentences, effects of drugs, profiteers, signs related to delinquent acts.
7.1.5. Time considerations
During the interim insurance period, the insurance buyer may consider refusing to participate in the insurance. The insurance company will reimburse the full amount of the initial premium without interest, minus the costs of medical examination, medical examination or insurance related expenses, if any.
7.2. The financial term in the insurance contract
7.2.1. Redemption value
The refund value is the amount that the policy holder will receive when the contract is canceled when the contract has not expired and is still valid.
Your life insurance policy will begin to be reimbursed after you have paid the premium for 2 years
7.2.2. Advance refund value
The insurance buyer may advance the value of the policy and refund the advance and interest at any time
7.2.3. Renewal and restoration of the contract void
Upon the payment date, the policyholder is entitled to an extension of 60 days from the anniversary of the contract. After 60 days, if the insurance buyer has not paid the premium, the contract will be invalidated. This contract can still be resumed within 24 months from the date of invalidation with the original fee plus the penalty / interest … In addition, the policyholder and the insured must be qualified. The legal and insurance conditions for insured by the insurer
7.2.4. Maintain contract with reduced insurance amount
If the policyholder is unable / unwilling to continue paying the premium but still wishes to be insured, the insurer may apply the contract with the insured amount reduced in proportion to the contract period. still validated. The insurer will use the refund to pay the premium and ensure that the contract continues to be effective. The insurance buyer is only protected when the risk arises and is no longer reimbursed and the special due to the maintenance of the contract.
In order to reduce the amount of insurance, the insurance buyer must give 30 days notice and the new contract will be effective from the due date of payment as soon as the insurance company approves in writing.
7.2.5. Deal insurance benefits
When an insurance event occurs, the insurer will pay the insurance amount to the beneficiary. The time required for the beneficiary to claim insurance benefits is one year from the date of the insured event. The time for the insurer to settle the benefits is 30 days from the date of receipt of complete and valid documents as required by the company.
7.3. General exclusion clauses in the life insurance policy
7.3.1. Eliminate death
When the insured dies, the insurer will compensate the beneficiary. However, in the following cases, the insurer will refuse to pay:
– HIV infection
– Execution of the death penalty
– war or war-related activities
However, refusal to pay does not mean that the beneficiary does not receive any money from the insurer. The insurance company will pay the full amount minus the advance and debt if any.
7.3.2. Eliminate pre-existing medical condition
Pre-existing medical conditions are in two cases:
– Diseases that have been treated, tested or consulted by a physician and other health professionals before the effective date of the contract, unless notified and accepted by the company in the insurance application form.
– Specific symptoms that appeared before the effective date of the contract, unless notified and accepted by the company in the insurance claim form.
7.4. Age to participate in insurance
The age of the insured person is based on the age of the last birthday of the insured person and is the basis for the insurance policy.
7.5. Wrong age & gender
In cases where insurance claim dossiers are filled in incorrectly, insurance enterprises shall handle them in the following directions:
– Incorrect information leading to reduced insurance premiums: Compensation for insufficient premiums or reduction of premiums corresponding to initial charges
– Incorrect information leading to increased premium: refund of excess insurance premium to the insurance buyer
– Failure to disclose information, the age is outside the insurance: pay back the premium paid minus the debt and interest (if any)
7.6. Appreciation of contract / premium due to contract maintenance
This is a common concept in life insurance. When the policy holder maintains the contract for a specified period of time as specified in the contract, the beneficiary will receive a bonus calculated as the reimbursed value multiplied by the average interest rate based on the business result. of the insurance company.