Policyholder The insured is also called the insured, generally called the insured, which refers to the person who has insurance interests in...
Policyholder
The insured is also called the insured, generally called the insured, which refers to the person who has insurance interests in the insured, applies to the insurance company for the conclusion of a life insurance contract, and is obligated to pay insurance premiums. The insurer has the right to designate or change the beneficiary, change the insurance contract, and terminate the contract.
The insured must be a person who has insurance interests in the insured. If there is no insurance interest, the insurance contract will lose its validity. The Insurance Law stipulates that the insured person has insurance interests in the following categories of people. That is to say, the insured person can take these people as the insured and apply for life insurance from the insurance company: 1. himself or his family members; 2. living expenses or education expenses The person to whom it is entrusted; 3. The debtor; 4. The person who manages property or interests for himself.
The Insured
The insured of life insurance is the person whose life and body are the subject of insurance and whose survival, death, illness or injury is the requirement of insurance claims, that is, the object of insurance. The insured can not only conclude an insurance contract for the insured, but also can be concluded by others for the insured. If the husband is the wife, the parents are the children, and the creditor purchases a life insurance policy for the debtor. However, when the insured considers another person as the insured, it must have an insurance interest in that person; and when the insurance contract is concluded, the insured must also be recognized in writing by the insured and agree on the amount of insurance.
Beneficiary (Beneficiary)
According to the insurance contract, the person who receives the insurance money paid by the insurance company. In general life insurance contracts, there is an agreement to designate or change the beneficiary, and the designation or change of the beneficiary belongs to the rights and interests of the insured. If the insured in the death insurance contract does not designate the beneficiary, the insurance money will be regarded as The estate of the insured. There is no limit to the number of designated beneficiaries. The insurer can designate one person or several people at the same time. The beneficiaries are not limited to natural persons (individuals), and legal persons (organizations, companies, groups, etc.) can also be designated as beneficiaries. . The only restriction on designating a beneficiary is that the beneficiary must survive when requesting the insurance amount.
Assurer
The insurer refers to various organizations operating insurance business. When the insurance contract is established, it has the right to collect insurance premiums from the insured person, and the insured has the obligation to pay insurance money when an insured accident occurs. Generally refers to insurance companies.
Insurance Interest
Insurance benefits, also known as "insurable rights", refer to the legitimate economic benefits that the insured person can enjoy because of his interest in the life or body of the insured. This kind of economic benefits will be sustained by the insured person due to physical injury or loss of the insured person.
Application Form
A letter of insurance is a written document that the insured person fills out when applying for insurance from an insurance company. It mainly includes three parts: basic information, notification items and declaration items. The basic information mainly refers to the basic information about the insured, the insured and the beneficiaries, as well as the items to be insured, such as: date of birth, address, telephone number, ID number, occupation; the notice is to record the information to the insured Inquiry items, such as: current health status, whether you are pregnant, etc.; declaration items refer to the authorized items of the insured, and confirmation that the notified items are true.
Insurance Premium
The insurance company calculates the amount that the insured person should pay to the insurance company in each period based on the insurance amount, insurance premium rate and payment method of the insurance applicant.
Sum Insured
The insured amount is the amount insured agreed by the insurance company. It is also the amount that the insurance company will pay in accordance with the insurance contract when an insured accident occurs.
Insurance Age
It refers to the age of the insured when applying for insurance. Calculated on the day of application for insurance, it is calculated based on full age, but if it exceeds six months, one year old will be added. For example: a person A was born in January 1965, a person B was born in August 1965, and both of them were insured in September 1999, then a person A is 34 years old and 8 months old, and the insurance age is 35 B is 34 years old and 1 month old, and the insurance age is 34 years old.
Base Plan and Rider
When the insurant applies for insurance, the insurance product that the insurance company can issue separately is called the main contract, and cannot be issued separately, and can only be attached to the main contract issuer, called the supplementary contract. Except for special agreements, generally speaking, the insurance effect of the supplementary contract ceases when the insurance effect of the main contract ceases.
Automatic Premium Loan Option
The payment period of an insurance contract may be as long as 20 years, and the policyholder may not be able to renew the premium due to busyness or depression during the premium payment period. In view of this, in order to prevent policyholders from suspending their policies due to temporary negligence or scheduling difficulties, insurance companies will ask them to choose whether to accept the insurance company’s "automatic premium payment" service when they fill out the form of insurance. The advantage of policy advance payment is that if accidents occur during the automatic advance payment period, the insurance company still bears the insurance liability, but when paying the insurance premiums, the deducted premium and interest will first be deducted.
Grace Period
After the second installment of insurance premiums are due and not paid, annual or semi-annual payment, in accordance with the terms of the contract, the insurance company must send a notice of insurance premiums to be called, and a grace period is 30 days after the arrival of the call. Period: For monthly or quarterly payment, no reminder will be given, and the grace period shall be 30 days from the day following the date when the insurance premium stated in the insurance policy is due. During the grace period, the insurance contract will continue to be valid. In the event of an insured event, the insurance company will still be liable for insurance, but the outstanding premium will be deducted from the premium paid; if the renewal premium is not paid within the grace period, the insurance The contract ceases to be valid from the day after the end of the grace period, and the insurance company is no longer liable for insurance.
Waiting Period (Waiting Period)
Generally speaking, it refers to a period of time after which the insured person is eligible to participate in or enjoy the protection or benefits under the insurance or retirement plan, or the benefits under the health insurance policy and disability clauses.
Cash Surrender Value (Cash Surrender Value)
Termination fee is also called termination refund, surrender value or cash value. When the insurer terminates the life insurance contract or the annuity insurance contract and the annuity payment period begins, the insurance company shall use the current policy value reserve as the basis for calculation. The amount paid to the insured person. However, insurance companies usually deduct a contract termination fee, and if there are unpaid policy loan principal and interest, and premiums and principal and interest paid in advance, they will also be deducted before payment.
Exclusion
The exclusion is a clause of the insurance policy that states that under certain circumstances, the insurance company can be exempted from payment liabilities. For example: the insured commits suicide, the insured intentionally causes the death of the insured, etc.
Obligation to inform (Concealment)
When concluding an insurance contract with an insurance company, the insurer shall, based on the principle of good faith, have the obligation to truthfully inform the insurance company’s written inquiries. If the insurer deliberately conceals, negligence or misrepresentation, so that the insurance company cannot estimate the reasonable risk, the insurer has the right to terminate the contract. Even after the insured accident occurs, the insurer has the right to terminate the insurance without paying insurance money.
The insurance company’s right to terminate the insured’s or the insured’s violation of the “duty of notification” shall be extinguished after one month after the insurance company becomes aware of the reason for the termination, or two years of non-exercise from the date of contract commencement.
Extended Term Insurance
Under the principle of not changing the insurance amount of the current year for the extension, the balance of the insurance policy value reserve accumulated in the contract at the time after deducting the operating expenses and the policy loan principal and interest, the outstanding premium, and the premium principal and interest in advance is calculated, and the original insurance is not exceeded. The period shall prevail, so that the contract can continue to be valid for a certain period of time.
After the change to the extended term insurance, the insured does not need to pay the insurance premium. When the insured dies or is totally disabled before the specified time, the insurance company shall still pay the death or total disability insurance premium according to the agreed insurance amount. When the insured is still alive at the specific time and has paid the life insurance money, the company will pay all the life insurance money in one lump sum.
Reduced Paid-Up Insurance
Under the principle of not changing the original insurance period and conditions but reducing the insurance amount, the balance of the insurance policy value reserve accumulated in the contract at the time after deducting the operating expenses and the principal and interest of the policy loan, the outstanding premiums, and the principal and interest of the advanced premiums shall be calculated as the standard. Use it as a lump-sum insurance premium to be paid in full. From then on, the insured does not have to pay insurance premiums, and the contract continues to be valid until the expiration date. After changing to fully paid-in insurance, if the insured dies or is totally disabled during the insurance period, the death insurance money or total disability insurance money will be paid according to the insured amount after the paid-up.
Fixed benefit [daily benefit] (Hospital Incom, HI)
When you are hospitalized due to an accident or illness, you can attach a medical certificate to the insurance company to apply for payment. After the insurance company accepts it, the insurance will be paid based on the number of days of hospitalization.
Pay as you go (Hospital & Surgical, HS)
That is, the medical expenses spent in hospitalization due to illness or accident are reimbursed in real terms. However, in order to avoid unnecessary waste, insurance companies usually set limits. In addition, the original receipt must be used to apply for the actual payment.
Assumed Interest Rate
When the insurance company collects the premium from the policyholder, it can use the premium to make the most profitable investment, and the income obtained will pay interest to the policyholder. Therefore, there is a certain discount interest rate at the beginning of collecting the premium from the policyholder. It is the predetermined interest rate. For the same type of insurance, the higher the predetermined interest rate, the lower the premium.
Policy Cancellation Right
Within ten days from the day following the delivery of the insurance policy, if the insured person is not satisfied with the insurance selection, he or she can apply to the insurance company for cancellation of all insurance contracts in person or by registered mail with the insurance policy in writing. The validity of the contract revocation shall be effective from the date of the insured’s written intention at 0:00 on the next day, and the insurance contract shall be invalid from the beginning, and the insurance company shall refund the insurance premium paid by the insured without interest.
The insurance company shall not be liable for insurance incidents that occur after the contract revocation takes effect. However, before the contract revocation takes effect, if an insured accident occurs, it shall be deemed not to have been revoked, and the insurance company shall still bear the insurance liability.
Responsibility Reserve (Reserve)
The liability reserve is the amount deposited by the life insurance company after the insurance premium has been collected from the policyholders in order to be able to fully fulfill the obligation to pay insurance premiums in the future in accordance with the provisions of the insurance contract. The deposit standard of the liability reserve fund shall be set by the financial management committee.
Policy Value Reserve
The policy value reserve can be regarded as the amount that the insurance company can use to pay for future insurance payments after deducting the necessary expenses from the accumulated premiums paid by the policyholders. The policy value reserve is based on the mortality rate and the predetermined interest rate based on the set insurance rate.
