Personal insurance protects an individual from any risks that threaten his health or life. The client can purchase the policy with a one-time payment or agree with the insurance company on a schedule of regular installments. The cost of insurance is determined by the risks covered and the SK’s rates. The amount of insurance compensation received by the client or his heirs is influenced by the type of insured event – temporary incapacity for work, disability or death.
Conditions of insurance contracts
The desired amount of insurance payment and the risks covered by the contract are determined by the client after studying the current IC tariffs. Based on this, the representative of the insurance company calculates the cost of the policy. If necessary, the resulting amount is divided into several parts, and the client receives a payment schedule.
Personal insurance policies are available to individuals and legal entities. Organizations prefer to protect employees who are about to travel outside the country for work or work in life-threatening and health-threatening conditions.
The standard term for a personal insurance agreement is one year. The policyholder can purchase an extended policy for 24, 36, 60 and more months. Short-term agreements (up to 31 days) are relevant for compulsory personal insurance. Similar requirements are imposed by the member states of the Schengen Agreement for all visitors.
Features of personal insurance and its types
Below are details of the most common types of insurance contracts.
Life insurance against accidents
Protects people from unforeseen expenses in case of accidents. The policyholder chooses the duration of the contract, the size of the maximum payment on it, the risks covered by the insurance. Among them:
- minor injuries
- moderate damage,
- incidents provoking disability,
- fatal accidents.
Investment insurance
A hybrid of life insurance and investment in financial instruments with guaranteed returns. The terms of the contract guarantee the insured person to receive an increased insurance amount upon the occurrence of an insured event.
Risks covered:
- serious injuries due to the actions of third parties,
- disability groups 1 and 2,
- critical illness,
- death by accident.
The return on investment is determined by the financial instruments used. The policyholder has the opportunity to choose them independently.
Endowment insurance
Allows you to create savings while protecting the life and health of the client. The incoming SK amounts are divided into two streams – risk contributions and the funded part. It differs from an investment by the possibility of accumulating a fixed amount by a certain date or event.
Risk coverage:
- disability,
- life-threatening pathologies,
- injuries due to accidents,
- loss of life due to the actions of third parties.
Health insurance
Compensates for the expenses of the insured for treatment. Acts when critical diseases are detected in a person:
- malignant neoplasms,
- heart valve pathologies,
- destructive changes in the coronary arteries,
- severe damage to vital organs,
- changes in the structures of the brain.
The client of the insurance company undergoes regular medical examinations during the period of the contract.
Insurance for children
Allows you to compensate for the cost of treating a child in the event of accidents. Insurance coverage covers:
- thermal / chemical burns,
- insect / animal bites,
- entry of foreign objects into the respiratory tract,
- acute viral / bacterial infections,
- disability due to injuries,
- death from anaphylactic shock, injury or drowning and other cases.
Advantages and Disadvantages of Personal Insurance
Personal life insurance for parents is a useful tool that protects the insured person and their loved ones. The sums paid by the IC will allow the family to compensate for the costly treatment of the breadwinner. In the event of his death, his relatives will not be left without a livelihood thanks to investment or savings programs. The programs allow you to accumulate the amounts necessary to pay for the education of children, the purchase of real estate or a car.
Insurance payments are many times higher than the size of the insurance premiums. Thanks to this, the insured person receives compensation for lost income during the period of his incapacity for work. The advantage remains the safety of the funds of married men and women. In the event of a divorce, premiums and savings are not considered jointly acquired property.
The disadvantage of the considered insurance products is the need to make regular contributions. Violation of the terms of the contract by the insured will lead to penalties. Certain difficulties may arise in case of early termination of the contract. The SK client will need to reimburse the amounts previously received for tax deductions.
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