Withdrawal of life insurance money on time in accordance with Vietnamese law
“Hello Lawyer X, my name is Tran B. I am currently working at a domestic company for 20 years now. During my work, I participated in the life insurance service of insurance company X, the contract between me and insurance company X is pension insurance, under which company X is responsible for paying covered me since I decided to retire. I have been paying insurance premiums for 20 consecutive years. I am about to retire now, can Lawyer X explain to me the timely withdrawal of life insurance? Thank you Lawyer X.”. Thank you for your question. Participating in life insurance is a long-term investment, helping participants to be fully protected against risks and receive many benefits at maturity. And to answer this question, today, LSX Lawfirm will give you an article about “Withdrawal of life insurance money on time in accordance with Vietnamese law“, as follows:
Legal grounds
Law on Social Insurance 2014
Law amending and supplementing a number of articles of the Law on insurance business in 2010
What is life insurance money?
Life insurance is a product of insurance companies; to protect people against risks related to health, body, and life. Simply the person participating in the agreement and signing the insurance contract; with the insurance company about paying the correct fees regularly to the financial reserve fund; managed by an insurance company to pay a certain amount; when unlucky to risk or to maturity.
Accordingly, life insurance money can be understood as the amount of money that insurance companies must pay to policyholders when there are events occurring in the contract or at the time of maturity.
Accordingly, to Clause 1, Article 12 of the Law on Insurance Business. The insurance contract is an agreement between the insurance buyer and the insurance enterprise; whereby the insurance buyer must pay the insurance premium; the insurance enterprise must pay the insurance premiums to the beneficiaries, or indemnify the insured upon the occurrence of the insured event.
Benefits of life insurance
Having insurance offers great benefits. The essence of life insurance is that it is a safe way to save money for the future with the purpose of replacing income when the participant encounters unexpected risks.
Therefore, life insurance has great significance for people’s lives, it not only helps stabilize life when unexpected risks occur but is also a way to share risks in the community by taking a plurality of the few.
It is not possible for each of us to know for sure what the future might hold; we can only spare them. Joining life insurance is the way to overcome; In other words, the financial projections for those events that unfortunately happen in the future are signed in the contract.
Currently, there are several types of life insurance businesses as follows:
- Term life insurance
- Term life insurance then.
- Periodic payment insurance then.
- Mixed insurance
- Lifetime insurance
- Investment-linked insurance then.
- Pension insurance
How to withdraw life insurance money on time
The life insurance maturity date is simply understood as the last effective date of the insurance policy specified in the policy.
Life insurance will have an endpoint after about 10, 20, or 25 years; or lifetime insurance depending on the insurance plan. After this time, if the insured does not have any health, injury, or life risks covered by the policy, the policyholder will receive a sum of money called life insurance maturity.
The amount the policyholder receives after maturity is considered savings; that money means a lot to live in old age, or can be used as a gift for children and relatives in the future.
When the conditions for withdrawal of insurance are met; Insurers will need to prepare documents depending on the insurance company’s requirements. It basically includes the following documents to withdraw life insurance money on time.
- Firstly, the Application form for payment of insurance benefits
- Secondly, the ID/HC/CCCD card of the insured
- Thirdly, the Original contract set
- Finally, Other relevant documents
How to withdraw life insurance money early
In some cases, the policyholder wants to withdraw the insurance amount before the maturity date. Withdrawal can do in one of the following ways:
Firstly, withdraw money from the contract account value
The insured can only withdraw money from the account when:
- Firstly, The insurance policy is valid for at least 2 years or more.
- Secondly, Fees will apply when withdrawing funds from the contract account value. This fee determined according to the time of withdrawal request.
- Thirdly, The applicable fee charged as specified at the time of the buyer’s withdrawal request.
Secondly, advance from the contract account value/refund value
Refund value understand as the amount received when the life insurance buyer ends the policy early. To advance, you must meet the following conditions:
- Must insure from the 2nd year onwards because the condition for the insurance policy to have a refundable value is to be valid for at least 2 years.
- The amount to advance is only up to 80% of the refund value.
Thirdly, liquidation of the contract
Contract liquidation is the early termination of an insurance contract.
The insurance company will still agree and carry out the termination procedures at the request of the participant.
Consulting service of LSX Lawfirm
Above is LSX Lawfirm’s advice on the content of the problem “Withdrawal of life insurance money on time in accordance with Vietnamese law“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
The policyholder can completely authorize another person to receive benefits when the insurance matures. The authorization is done in accordance with the provisions of civil law.
When the insured event occurs, the insurance enterprise must pay the insurance money or indemnify according to the time limit agreed in the insurance contract; In case there is no agreement on the time limit, the insurance enterprise must pay the insurance or indemnification within 15 days from the date of receipt of a complete and valid dossier of the claim for insurance payment or indemnity.
The enterprise is obliged to promptly pay the insurance premiums to the beneficiaries or indemnify the insured upon occurrence of the insured event; If the business does not pay the insurance, the insured can completely sue to claim the insurance payment according to the general provisions of civil proceedings.
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