Types of Life and Health Insurance
Some of the types of life insurance contracts are:
Simple life insurance
Full life insurance
Providing survival
-Simple life Insurance
The amount of insurance on simple life insurance policies is the amount of reimbursement that insurance policy recipients receive if the insured dies within the coverage period. With the payment of this indemnity, the insurance policy expires, this is a pure life insurance policy.
The duration of the insurance policy is different, one, one, ten, fifteen and twenty years. Some plans start from the date the first premium is paid until the insured turns 65. Pure life insurance policies do not necessarily provide the insured with a lot of money, just like full life insurance policies. When the system ends, if the insured has survived, the insurance policy pays no benefit.
At the end of the insurance period, the insurance coverage expires and no money is saved by the police, but during the life of the policy, the entire insurance amount can be paid to the beneficiaries if the insured event occurs within that period.
–Complete life insurance
Term life insurance provides for the amount of the policy to cover for the policyholder if the policyholder loses a life during the policy period or the term of the coverage. At the end of the time, the coverage is automatically terminated: the insured is no longer covered and will not benefit from any insurance policy.
In short, long term life insurance provides pure insurance protection.In contrast to the above, full life insurance provides life insurance protection for the life of the insured, until he/she complies with the terms of the policy and pay the necessary premium.On the other hand, a monetary value is a compulsory saving or reserve fund included in permanent insurance, which holds an additional premium to the benefit of the insured. The insured can borrow money from this fund with a low-interest rate and has the right to collect monetary value.
–Permanent health insurance
Permanent health insurance differs from life insurance as this contract does not pay compensation for the death of the insured, but when the insured is unable to work due to illness or accident. This insurance brings in a regular income which can be weekly or monthly to replace the financial losses that the insured is unable to earn. This insurance contract has as its object the insurance of the person’s health rather than his life.
Permanent health insurance is classified as long-term insurance because the longer the premium is paid by the insured who acts by the terms of the relevant contract, the longer the insurance period. The insurer, under the terms of this insurance contract, if the premiums are typically paid, cannot cancel the policy or increase the insurance premium and if the number of claims paid under this contract is high.
– Inability
Permanent health insurance policies offer benefits payable only when the insured is unable to carry out his or her activity as defined in the system.
Disability means that the insured is unable due to illness or accident to continue working under the occupation expressed in this policy and is not practicing any other profession. In the insurance policy, the insured must declare his profession, and it is a necessary condition that in any case, the insurer should be informed if the insured changes his job. If the contract does not specify the occupation, then the definition of disability will be different, so the insured who due to illness or accident is incapable of pursuing the task with which he was occupied before will be considered inadequate.
In cases where the insured is unemployed, the degree of disability must be such that the insured must necessarily stay at home and be unable to move. The insured must certify the degree of disability from a designated professional physician recognized by the insurance company.
