One in three Russians at least once issued such policies – these are the data of a study conducted by SberLife Insurance. Such contracts can protect against unexpected costs in the event of adverse events. Let’s look at what you should consider when applying for life insurance.
The first is, above all, volunteering. Life and health insurance is optional. At the center of the process is the initiative of the person.
In the event of adverse events, the insurance company makes payments that help the client and his family maintain their usual lifestyle. During its 10 years of operation, SberLife Insurance has paid about 500 thousand: 60% – due to death, 20% – due to loss of health (temporary disability, illness, diagnosis of especially dangerous diseases), 10% for each – disability and due to injury.
The contract includes:
insurer – the insurance company that issued the policy;
policyholder – the person who concludes an insurance contract with an insurer;
insured persons – persons whose life and health are protected by contract. may conflict with the insured;
beneficiary – the person designated as the recipient of an insurance benefit. This may be the insured or the insured or another person.
The contract specifies the period of validity, provides a list of insured events and a comprehensive list of situations not covered by insurance, as well as the amount of contributions and the frequency of payment.
The first 5 nuances when applying for insurance.
When making a life insurance contract, you need to pay attention to a number of points. Firstly, within 14 calendar days from the date of signing the contract with the insurance company, the customer can terminate the contract with a refund of the money deposited. This is indicated in the instructions of the Central Bank of the Russian Federation of November 20, 2015 No. 3854-U – the so-called “cooling period”. For investment and donation life insurance contracts amounting to 1.5 million rubles, this period is 30 days.
Second, finance should be approached with equanimity. This also applies to insurance. It is possible and even necessary to read the documents, request applications and study the conditions in detail! Standard contract templates are available on the insurance company’s website, you should be familiar with them beforehand. Be sure to review the “Insurance Rules”, “Table of Amortization Amounts” and “Declaration of Investment” (for cumulative and investment life insurance contracts).
If the customer is not satisfied with something in the contract, this should be discussed immediately. The insurer can meet halfway and put the necessary clause in the contract.
Third, it is important to understand what will be the consequences of terminating the insurance contract after the “cooling-off period” has passed, and in what circumstances this is permissible. For example, it can be terminated both at the initiative of the customer and at the initiative of the insurance company.
Fourth, it is important to clarify how much and under what conditions insurance premiums and insurance premiums should be paid. If the contract provides for the payment frequency, you should know what happens if you miss at least one slice. This, among other things, can lead to termination of the contract and loss of part of the funds.
Finally, it is worth remembering that life insurance contracts differ from deposits in terms of the mechanism for withdrawing deposited funds. After paying the insurance premium, the money becomes the property of the insurance company and early termination can result in financial losses.
One of the most frequently asked questions is: Can the insurance contract be terminated?
Yes, it is possible even after the “cooling down” has passed. However, these conditions should be specified in the contract text. According to article 958 of the Civil Code of the Russian Federation, the insurant may withdraw from the contract if the probability of an insured event disappears or the risk ends for other reasons.
At the same time, special attention should be paid to the fact that a number of insurance products provide the possibility of obtaining the so-called amortization amount in case of early termination of the contract at the end of the “cooling period”. This early termination will result in the payment of the accumulated amount according to the “Table of Amortization Amounts”, which is an integral part of the contract. Particular care should be taken that in most cases the “amortization amount” is less than the insurance premium paid.
In addition, when concluding an insurance contract, you should study the conditions for the implementation of an insured event. In order to avoid misunderstandings, it is useful to inform the insurance company representative about the presence of chronic diseases and health status. Perhaps in the future this will save you from problems with getting paid.
Premiums may be higher if there are risks, such as serious illness. However, some companies offer special offers for people with special needs.
What to do if the insurance contract is rejected?
The insurance contract is presented under the terms of the public offering. If there is no official reason for refusal (if the customer is on the risk lists, for example), the insurer has no right not to sign it. If this still happens, the decision can be appealed to Rospotrebnadzor, the court, the Central Bank of the Russian Federation or the prosecutor’s office. However, you must have proof – a written appeal and a response to it.
The text was written in collaboration with Alexey Potapov. Alexey KarasovSberLife Insurance Senior Legal Counsel.