What is life insurance? Types of life insurance

    Life insurance is a type of long-term insurance to ensure payment of money to insured under a contract when there is a risk or maturity event. Each object is designed specifically for an insurance contract.

    What is life insurance?

    Life insurance is the insurance guarantee of the insurer for the insured with an agreed amount in the contract when a risk event occurs or the insurance term ends, provided that the person Participants must pay periodic fees for a pre-agreed period of 5 years, 10 years, 20 years ...
    Very special insurance packages are best designed for each customer, depending on the financial condition and future financial needs of customers.
    Some companies provide life insurance products in Vietnam
    As of September 2018, Vietnam has 61 insurance enterprises, including 18 life insurance companies in Vietnam with 17 foreign insurance companies and only one Vietnamese company. Here are some famous and diversified life insurance companies in Vietnam that you can refer to:
    • Bao Viet Life
    • Prudential Life Insurance 
    • Manulife Life Insurance
    • Dai-ichi life insurance 
    • AIA Life Insurance
    • Chubb Life Life Insurance
    • Sun Life life insurance 
    • Generali life insurance
    • Hanwha Life Life Insurance


    According to some documents, based on 4 criteria to divide the types of insurance, the current life insurance companies in Vietnam are also very diverse in insurance products.
    Overview of life insurance types:
    CriteriaTypeCompanies that provide products
    1. Objects- Insurance for children 
    - Insurance for pillars 
    - Pension insurance
    Bao Viet Life, 
    Prudential, 
    Manulife, 
    Dai-ichi, 
    AIA, 
    Chubb Life, 
    Sun Life, 
    Generali ...
    2. Method of participation-Private 
    insurance-Group insurance
    3. Risk level-The death 
    insurance - Life 
    insurance - Mixed insurance
    4. Contract term-Main insurance 
    -Additional insurance / auxiliary insurance

    1. According to the participants

    • Insurance for children: mainly products that have both health care and saving children an education fund when they go to college or graduate.
    • Pillar insurance:  Mainly products with comprehensive protection, investment products, for the breadwinner who want to take care of health, financial protection for the whole family.
    • Pension insurance: A product that both protects and accumulates retirement funds when you are old, for those who have a need to save retirement funds to ease old age.
    Targeting is the most popular form of life insurance companies in order to offer the best insurance benefits for target groups.

    2. Under the mode of insurance participation

    • Personal insurance:  A type of insurance that takes the form of an individual insurance participant. Individuals voluntarily participate in 1 or more insurance contracts. With this insurance, the main insured can purchase additional products for family members on the same contract.
    • Group insurance:  A type of insurance in the form of collective participation with a list of individuals who are insured.
    Usually the group's retirement insurance products like  Manulife's Retirement Title, Bao Viet Life's Pension Insurance.


    3. According to the level of insurance risk: 

    a / Insurance in case of death
    This is the most common type of life insurance and includes the following two categories:
    Term insurance:  A type of insurance that is insured for death occurring during the period specified by the contract. Term insurance is also known as temporary insurance or life-term insurance.
    Accordingly, if the death does not occur within the prescribed time, the insured person will not receive any money.
    If the death occurs within the validity period of the contract, the BH shall be responsible for paying the insurance amount to the designated beneficiary of the BH benefit.
    For example, BIDV MetLife's Term Insurance product.
    Term insurance has many types of insurance such as: Fixed death insurance; Death insurance can be renewed; Death insurance can be converted; Term death insurance decreases; Death insurance increased gradually ...
    Characteristics
    • The term of insurance is determined
    • Liability and benefits are temporary
    • The insurance fee is low because it is not necessary to set up a savings fund for the insured.
    Purpose: Ensure burial and burial costs
    • Sponsor family and relatives for a short time
    • Pay the debts of the insured's loans or mortgages
    Lifetime insurance:  A type of insurance whose insurance period is not determined and the sum insured is paid to the beneficiary when the insured dies.
    Currently this type of insurance also guarantees to pay the insured as soon as they live to 99 years of age as Prudential insurance, manulife insurance has 4 new products, ACE Life Vietnam has lifetime insurance .. .
    Lifetime insurance has many types of insurance such as: Life insurance for a lifetime; pay once; regulations on the number of fees paid; or non-profit Lifetime Life Insurance; participating in profit sharing;
    What is life insurance? Types of life insurance
    What is life insurance? Types of life insurance

    Characteristics:
    • The insurance amount is paid once when the insured person dies
    • Indefinite insurance period
    • Insurance fees do not change during the insurance process and can be paid once or periodically
    • The premium is higher than the life of a term because the risk of death is inevitable, so the amount of insurance must be paid
    Purpose:  Ensuring income to stabilize family life and financial protection, creating and starting a business for the next generation or caring for children when they grow up.


    b / Life insurance
    Is the type of insurance that BH insurers commit to pay regular amounts over a specified period of time or throughout the life of participants.
    If the insured dies before the payment due date, no money will be paid.
    Characteristics:
    • Recurring benefits for the insured during the specified time or until death.
    • Premiums are paid once
    • If the periodic allowance reaches death, the time is not determined.
    Purpose:
    • Secure fixed income when retiring or when your age is weak.
    • Reduce the need to depend on social welfare or children when old age.
    • Sponsor living standards in the remaining years of life.
    c / Mixed life insurance
    As a combination of insurance and savings, the insurance amount will be paid when the insured person dies or lives to the maturity of the contract and the pre-determined insurance term. Insurance will be paid at the maturity date.
    This mixed life insurance includes a combination of risk and saving factors, so it is widely applied in most countries in the world in general and Vietnam in particular.
    And any insurance company in Vietnam has this insurance.
    Characteristics:
    • The amount of insurance paid when the contract expires or the insured person dies during the insurance period.
    • The term of insurance is determined (usually 5 years, 10 years, 20 years ...)
    • Insurance fees are normally paid periodically and remain unchanged throughout the term of insurance.
    • Can be divided interest through investment insurance and can also be refunded when no conditions continue to participate.
    Purpose: Ensure stable family life and relatives. Moreover, to create an education fund for children, to establish a disciplined savings fund, to invest safely, to retire when they get old, to repay debts when there is no financial capacity ...

    4. According to the contract term

    According to the contract term, there are additional products for the main product, these are products with a term of only 1 year, 1 year after the resumption of contracts such as: critical illness insurance, support hospitalization, permanent injury insurance due to accidents, insurance for giving up fees ...


    Should I buy life insurance?

    In fact, you SHOULD buy life insurance for the following reasons:
    • Life insurance helps care for and protect families against all risks, helping their children to study successfully, helping your career to be sustainable, making your old age comfortable.
    • The purpose of life insurance is a guarantee, mutual support. Accordingly, the amount paid to relatives and families of the insured when unfortunate at risk will help relatives pay huge expenses such as medicine, funerals or money to to settle down.
    • Insurance brings you income to feed your children to school when unfortunately you encounter risks such as illness, accident ... loss of working ability.
    • Life insurance is a form of regular and disciplined savings. When deciding to buy a life insurance policy, small monthly fees are considered as regular expenses such as meals, electricity, water ... and the agent is a regular person. remind and collect this money.
    • Life insurance supports financial hardship for the insured's relatives and families when the insured person is at risk with a large sum of money even if they can save a very small amount of money.
    Thus, understanding what life insurance is and the types of life insurance currently help you get the most overview and easier to choose the most suitable insurance product yourself.

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