One in three Russians has issued such policies at least once, according to a study conducted by SberLife Insurance. These contracts help cover unforeseen costs when adverse events occur. Here is what to consider when applying for life insurance.
First, and most important, volunteering matters. Life and health insurance are optional, and the person taking out the policy drives the process with their initiative.
When adverse events happen, the insurer makes payments to support the client and their family in maintaining their usual lifestyle. In ten years of operation, SberLife Insurance has disbursed roughly 500 thousand rubles in total: about 60% for death, 20% for health-related losses such as temporary disability or serious illness, and 10% each for disability and injuries.
The contract defines the insurer, the policyholder, the insured persons, and the beneficiary. The insured are the people whose lives and health are protected by the contract. The beneficiary is the recipient of the insurance benefit, which may be the insured person or another designated individual.
The policy specifies the validity period, lists covered events, and outlines situations not covered by the policy. It also details premium amounts and payment frequency.
The first five nuances to note when applying for life insurance.
When entering into a life insurance contract, a few key points deserve attention. First, within 14 calendar days from the date of signing, a customer can terminate the contract and receive a refund of the money deposited. This is commonly referred to as a cooling-off period, and is established by regulatory guidance. For investment and donation life insurance contracts valued at 1.5 million rubles, the cooling-off period extends to 30 days.
Second, approach finance with calm and diligence. It is both possible and advisable to read the documents, request applications, and study the terms in detail. Standard contract templates are often available on the insurer’s website, so becoming familiar with them beforehand is wise. Review the policy rules, the amortization schedule, and the investment declaration for cumulative and investment contracts.
If the customer is not satisfied with something in the contract, it should be discussed immediately. The insurer can meet halfway and add the necessary clause to the contract.
Third, understand the consequences of terminating the contract after the cooling-off period, and the circumstances under which termination is permissible. Termination can occur at the initiative of either the customer or the insurer.
Fourth, clarify how premiums are calculated and under what conditions they must be paid. If the contract specifies a payment frequency, know what happens if one payment is missed. This can lead to contract termination and potential loss of funds.
Finally, remember that life insurance differs from a deposit in how withdrawals are handled. After paying the premium, the money is managed by the insurer, and early termination can result in financial losses.
A common question is whether the insurance contract can be terminated. Yes, it is possible even after the cooling-off period, provided the contract text allows it. Under applicable civil law, the insured may withdraw if the probability of an insured event ceases or the risk ends for other reasons.
Some products offer an amortization amount at early termination after the cooling-off period. In those cases, the payout follows the amortization table, which is part of the contract. Investors should note that the amortization amount is often less than the premiums paid.
Additionally, when signing an insurance contract, it is important to review the conditions for a covered event. To avoid misunderstandings, inform the insurer about any chronic illnesses or health status. This may prevent payment delays in the future.
Premiums may be higher if there are significant health risks, but some providers offer special terms for people with particular needs.
What should be done if an insurance application is rejected? Insurance contracts are typically offered under public terms. If there is no legitimate reason for refusal, such as a customer appearing on risk lists, the insurer should not decline the contract. If denial occurs, the decision can be appealed to regulatory bodies or the courts, provided there is written documentation of the appeal and its outcome.
The information here reflects guidance developed in collaboration with a legal advisor team and policy specialists from the insurer, ensuring clarity on typical processes and common questions.