In the current trend of integration and development, many life insurance companies have formed. With the purpose of protecting people from risks and assisting in unnecessary circumstances, many people are aware of the benefits and risks of participating in this life insurance package. Because, many companies established forged or during bankruptcy, affecting the assets, the amount of money that the insurance buyer pays; but it is impossible not to mention reputable and reputable companies. bring many valuable benefits. LSX Lawfirm will give you an article about: “Life insurance foreigners can learn in Vietnam”, as follows:
Legal grounds
Law on insurance business 2000
What is life insurance?
According to the provisions of Clause 12, Article 3 of the 2000 Law on Insurance Business:
“Life insurance is a type of insurance business in case the insured person lives or dies.”
Life insurance is a commitment between an insurance company and an insured in which the insurance company is responsible for paying the insured amount (insurance amount) to the participant when the participant has event predetermined and the policyholder is responsible for paying the premium in full and on time.
From a legal point of view, life insurance is a contract of commitment to pay insurance premiums from a life insurance company when an unfortunate accident occurs to the insured, provided that the policyholder pays a fixed premium. The full term according to the pre-agreed period can be 5 years, 10 years, 30 years…. In there:
- Insurance enterprise or life insurance company an enterprise established, organized and operating under this Law and other relevant laws for business in insurance and reinsurance. .
- An insured person is a person whose health and life – the main insured subject of a life insurance policy. Currently, an insurance policy has only one main insured (except for some participating products for pregnant women).
- The insurance buyer is actually the person who pays a periodic premium to maintain the contract. The insured can be the policyholder.
An insurance policy has two parts: the main life insurance part and the supplementary insurance purchased with the main product. Accordingly, depending on the insurance package that the customer participates in, life insurance will cover the risks of accidents, injuries, critical illnesses, death and illness in hospital, surgery, and dental maternity…
The main purpose of life insurance is to protect people against unexpected risks, but besides that, life insurance combines elements of savings and investment.
What is a life insurance policy?
An insurance contract is an agreement between an insurance buyer and an insurance provider. The content of the contract agreed and agreed by both parties, ensuring the rights and obligations of the buyer and the insurance business.
Types of insurance policies include:
Personal insurance contract;
Property insurance contract;
Contract of civil liability insurance.
You can also refer to the artlce related to Procedures for establishing a foreign insurance branch in Vietnam or Legal capital of enterprises in the field of insurance in Vietnam.
What does life insurance mean?
Life insurance is a type of insurance that covers the life or death of the insured. Therefore, life insurance has the following basic characteristics:
Firstly, life expectancy, human life and health cannot determine.
Second, the insured event not entirely associated with risk.
Insurable event – an objective event agreed upon by the parties or prescribed by law for which, when such event occurs, the insurer must pay insurance money to the beneficiary or indemnify the insured.
Third, only life insurance companies offered. Life insurance is personal insurance, this is the most basic attribute of life insurance other types of insurance. For example, if you participate in life and health insurance, you must pay a premium when participating in insurance. During the insurance period, if you encounter an accident such as an accident, the insurance party will pay the costs incurred in encountering this risk.
Fourth, this is a long-term contract and is usually a savings account.
Fifth, life insurance is a type of contract with model terms, so it requires a lot of flexibility and transparency.
Based on insurance coverage, there are 7 basic types of life insurance: Term life insurance, term life insurance; whole life insurance, mixed insurance, periodic payment insurance, investment-linked insurance, retirement insurance.
Related questions about Life insurance foreigners can learn in Vietnam
Normally, the premium structure usually consists of 2 parts:
Net fee
A fee used to pay in case the insured person encounters a risk to his/her life, body or health. This fee accounts for a large proportion of the total fee collected and is calculated based on the following bases:
Life expectancy of the insured
Technical interest rate: Deposit interest rate calculated in the fee basis
Other factors such as: insurance period, insurance amount, method of fee payment, early cancellation rate
The sum insured is the amount used as the basis for determining the insurance benefits as prescribed. The insurance amount is selected by the policyholder in accordance with the insurance company’s regulations and recorded in the insurance claim or in the contract’s appendix. Usually, when participating in insurance at reputable companies, you will be advised by staff quite carefully about this to make the right choice for your current financial situation.
The premium and the sum insured are closely related. In practice, the total premium is usually calculated based on the sum insured and the premium rate using the following formula:
Premium = Rate of premium x Amount of insurance,
Amount of insurance = Premium : Rate of premium
As such, the insurance amount is the basis for calculating the premium. The higher the premium, the greater the benefit. However, before participating in insurance, please consider joining with a suitable fee to ensure the maintenance of the contract
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