What is Life Insurance?

What is ul insurance? What are the advantages of whole life insurance? Whole life insurance is the optimal way to accumulate financial resources, only need to pay a continuous premium for 8-15 years for a lifetime protection plan with interest divided every year.

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What is whole life insurance?

1/ What is whole life insurance?

Life Insurance (also known as life insurance) belongs to the product line Universal Life (UL) is an insurance operation that combines two insurance elements and profitable investment into the same insurance contract.

2/ Characteristics of life insurance business

With life insurance products, the premium paid by customers will be divided into 2 separate management parts: part insuranceand sectioninvest.

In particular, the investment part accounts for the main proportion, in accordance with the wishes of the Policyholder to invest in increasing assets.

Whole life insurance policies are long-term contracts with no expiration date.

Whole life insurance policies have the main purpose of insuring the family’s income in the event of the death of the insured.

For insurance policies with large sums of insurance, participating in whole life insurance is also meaningful in preserving assets, creating and starting a business for the next generation when the insured person dies. hundred years old)

The main insurance product of most life insurance companies today, has many benefits that are superior to that of traditional life insurance, and is participated by many individuals with very high insurance prices.

In Ho Chi Minh City, there are Entrepreneurs participating in a life insurance policy with a compensation amount of VND 35 billion (about USD 1.85 million) with an annual premium of 1.2 billion VND.


What is ul insurance product?

2.1 Amount of insurance

– The amount of insurance normally does not limit the minimum or maximum, based on the amount of the customer’s annual premium.

– The insurer pays a lump sum of indemnification value to the beneficiary when an insured event occurs or when the policyholder wishes to terminate the contract to withdraw the accumulated refund value in the policy. co-insurance.

– Unspecified, it is the period from signing the policy to the death of the insured (due to accident, illness or up to 100 years old).

– Whole life insurance policy is a type of long-term insurance and the insurance payment is certain (If the insured dies, the beneficiary will receive the Sum Assured, If the insured is still alive, can receive the Return Value of the Policy in any year from the date of validity of the Policy for 2 years or more).

See also: What is Affect – Meaning of Affect

– Therefore, life insurance policy can be considered as a form of savings, in order to create a large amount of money in the future for beneficiaries (children, grandchildren, etc.) or receive it back when the insured person retires. Retire.

2.3/ Lifetime insurance policy with profit sharing every year

– Dividend interest is paid among the highest among life insurance products with profit sharing from insurers, so the more years the contract is valid, the larger the refund value will be.

If on average the contract receives 8%/year and this person lives to the following time: Contract (contract) has been valid for 13 years (this person is 36 years old) can receive a refund value of 106 million, contract 23 years (46 years old) get 209 million, 33 year contract (56 years old) get 426 million, 43 year contract (66 years old) get 916 million, 53 year contract (76 years old) get 1,976 million, 63 year contract (86 years old) received 4.265 million, 73-year contract (96 years old) received 9,211 million.

– The timelines mentioned above are for reference only to see how the refund value increases when receiving profit divided from the insurance enterprise. During the insurance policy period, the policyholder can receive the refund value of the insurance policy. contract at any time of the year if desired.

2.4 Critical illness benefits

– This insurance product line offers an advance of 50% of the insurance amount when the insured person is found to have a terminal illness (cancer, stroke, polio, coma, burns, liver failure) , kidney failure..), not only death and total permanent disability benefits like other life insurance lines.

– In addition, additional products can be purchased (pre-paid critical illness insurance, hospital support insurance, terminal illness insurance, comprehensive accident insurance ..) with premium rates. very low per year.

2.5 Insurance premium is very flexible

– One-time payment or periodic payment (Yearly, quarterly, monthly)

– The fee does not change during the premium payment term of the contract

– The basic premium each year determines the amount of insurance (par value of insurance) of the contract: Usually the minimum fee to be able to join a lifetime contract is VND 500,000/year.

The face value of insurance is 40-85 times the premium of the year (depending heavily on the age of the insured: the age of 20 face value of insurance is 85 times the premium/year, age 60, the par value of insurance is 10 times the premium/year) .

For example: You want to pay a premium of 1 million/year, you can sign a contract with a compensation price of 40-85 million. If you want to receive a high refund value later, you can choose to join the BH 40 or 50 million face value, if you want high insurance, you can choose the BH face value of 85 million, but surely the refund value will be lower in the future. in the case of choosing the level of 40 or 50 million.

Normally, the payment term is 11-15 years, the policy can be maintained until the insured is 100 years old. It is possible not to pay the premium for 2-3 consecutive years but the contract is still valid, the insurer will compensate if the risk occurs as in the case of still paying the full premium (This is usually only allowed when the contract valid for more than 3 years).

See also: What is Emulate – What does Emulate mean

– You should pay the fee according to the contract, it is best, if you really have temporary difficulties in terms of the main reason, you should use it. When financial stability is restored, you can pay compensation for the unpaid fees or just continue to pay the next installments of the contract.

Source: internet

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