As in all insurance business, the insured transfers the risk to the insurer, accepts the insurer’s terms, and pays the premium.

Unlike other insurance policies, life insurance transfers the risk of survival or death of the insured.

When an insured person’s life is insured in an accident, the insurer pays the benefit. Initially, life insurance was designed to cover possible financial burdens due to unpredictable death. Later, a savings component was introduced into life insurance, so that the insurance company also pays the agreed-upon benefits to those who are still alive at the end of the insurance period. Life insurance is a social security system and is an insurance business that insures the life and body of a person. For each person, death, old age, disability, illness, etc. are the perils of life, which we call personal perils.

In society as a whole, there will always be people who have accidents, people who get sick, and people whose lives are threatened by various dangers at any time, so we must adopt a method to deal with personal dangers, i.e., to give some material help to the person who has personal dangers and his family financially, and life insurance belongs to this method. It is characterized by the conclusion of an insurance contract, the payment of premiums, and the provision of protection for the insured, in order to enhance the ability to resist risks, prepare a family financial plan, build a psychological line of defense for you and your family, construct a world of love, and create a bright future.

Life insurance is a noble cause that sends warmth to thousands of families. Life insurance is increasingly understood, accepted and loved by people as a means of investment with both insurance and savings functions. People can prepare for their old age when they are young, prepare for tomorrow today, and prepare for the next generation in the last generation. In this way, families can get livelihood protection when accidents occur and pensions in old age.

A life insurance contract, like any other insurance contract, is a legal contract that specifies the period and conditions for assuming risk. A number of limitations, including a suicide clause, are agreed in the liability exclusion. The suicide clause states that the insurer is not liable to pay benefits if the insured commits suicide within a certain period of time (usually after one year) after taking out the policy. Most life insurance contracts have an observation period (also usually two years) during which the insurer has a statutory right to decide whether to pay benefits or refund premiums if the insured dies within that period.

When the insured dies or reaches the age specified in the insurance contract, the insurer pays the premium. One reason people buy life insurance is to protect the beneficiary from financial hardship due to the death of the insured. The proceeds from the insurance pay for funeral and other death expenses and can be invested to replace the deceased’s salary. Another reason to purchase life insurance is that it allows for family estate planning. It prevents retirement from being affected by the reduction of income due to retirement.

When an insured person dies, the beneficiary submits a death certificate and claim form to the insurer to file a claim. If the insured’s death is suspicious, the insurer may conduct an investigation into whether the event of the insured’s death was in accordance with the insurance contract.
The insurance benefit is sometimes paid as a lump sum or may be paid in installments as agreed in the contract to protect the beneficiary for a certain period of time.

Life insurance is usually written for a period of more than one year. Therefore, periodic premium payments are a given, i.e. monthly, every three months, every six months or annually.

The risks covered by life insurance are: premature death, permanent disability