(1) Non-defense clause. An incontestable clause is also called an incontestable clause. The so-called incontestability means that when the insurer gives up the right to claim, it can no longer claim. This clause stipulates that a policy becomes an irrefutable certificate after it takes effect for a certain period of time (generally 2 years), and the insurer cannot deny the validity of the policy on the grounds that the applicant violates the principle of good faith and fails to fulfill the obligation of informing when applying for insurance. Generally speaking, the insurer's defense period is 2 years, and the insurer can only cancel the contract or refuse to pay the insurance premium within 2 years on the grounds that the applicant misreports, omits and conceals. This clause aims to protect the legitimate rights and interests of the insured and beneficiaries, and at the same time restrain the insurer from abusing the principle of good faith.
(2) age misinformation clause. The age misstatement clause usually stipulates that the insured misstates the insured when insuring. How to deal with the age problem? Generally, there are two situations: one is the situation that false age affects the validity of the contract. If the true age of the insured does not reach the age limit agreed in the contract, the insurance contract is invalid, and the insurer may terminate the insurance contract, but return the insurance premium to the applicant. Second, the false age affects the premium and the insured amount. If the age of the insured declared by the applicant is not true, resulting in the insurance premium paid by the applicant being less than or more than the insurance premium payable, the insurance amount shall be adjusted according to the true age. The reason for the adjustment is that age is the main factor in estimating life insurance risks and calculating insurance rates. The adjustment method is as follows: if the age misstatement causes the paid premium to be less than the payable premium, the insured can repay the principal and interest of the previously underpaid premium, or reduce the insurance amount according to the paid premium; If the misstatement of age causes the premium paid to be greater than the payable premium, the overcharged premium will be refunded without interest.
(3) grace period clause. Grace period clause is a clause in the life insurance contract of installment payment, which will not be invalid because the insured delays payment within the grace period. Its basic content is usually to give a certain grace period to the insured who fails to pay the due premium. As long as the insured pays the premium within the grace period, the policy will remain valid. During the grace period, the insurance contract is valid. In the event of an insurance accident, the insurer will still pay the premium, but will deduct the premium and interest owed from the premium. The grace period stipulated in the insurance law is 60 days, counting from the date when the insurance premium should be paid. The grace period clause takes into account the long-term nature of life insurance policies. In a relatively long period of time, there may be some factors that affect the insured's payment on time, such as changes in economic conditions and the insured's fault. The provision of grace period can facilitate the insured to a certain extent, avoid the loss of protection due to the invalidation of the policy, and also avoid the business loss brought to the insurer by the invalidation of the policy.
(4) automatic payment of insurance premiums. The automatic premium payment clause stipulates that if the insured fails to pay the premium within the grace period, the policy has cash value at this time, and the cash value is enough to pay the unpaid premium. Unless the insured has an objection statement, the insurer will automatically pay the premium owed, so that the policy will continue to be valid. After the first prepayment, if it is found again that the insurance premium has not been paid within the prescribed time limit, the prepayment shall be continued until the accumulated prepaid principal and interest reaches the cash value of the policy. After that, if the insured does not pay, the policy will be invalid. During the advance payment period, if an insurance accident occurs, the insurer shall deduct the principal and interest of the insurance premium from the insurance premium before paying.
The insurer's automatic premium payment is actually a kind of loan from the insurer to the insured, and its purpose is to avoid unintentional policy invalidation. In order to prevent the insured from overusing this provision, some insurance companies will limit the number of times they use it.
(5) Restoration clause. The reinstatement clause stipulates that after the insurance contract expires only because the insured fails to pay the premium on time, the insured reserves the right to apply for reinstatement within a certain period. The right of reinstatement is to restore the effectiveness of the original contract without changing the rights and obligations of the original contract. The period for applying for reinstatement is generally 2 years, during which the insured has the right to apply for reinstatement of the contract.
The conditions for reinstatement are as follows: usually, an application for reinstatement must be filled in and filed within the prescribed period of reinstatement; A letter of guarantee must be provided to show that the physical health of the insured has not changed substantially; Pay off unpaid premiums and interest; Pay off the principal and interest of the policy loan.
Compound effect can be divided into physical examination compound effect and simple compound effect. The resumption of medical examination is aimed at policies that have expired for a long time. When applying for reinstatement, the insured needs to provide medical certificate and guarantee certificate, and the insurer will consider whether to agree to reinstatement. Simple recovery is aimed at policies with shorter maturity. When applying for reinstatement, the insurer only requires the insured to fill in a health statement, indicating that the health status has not changed substantially after the insurance expires. Because most policies fail unintentionally, the insurer adopts a tolerant attitude towards the insured who applies for reinstatement within a short period of time (such as within 3 1 day after the expiration of the grace period), and the insured does not need to prove insurability.
Different from reinsurance, reinstatement is to restore the effectiveness of the original insurance contract, and the rights and obligations of the original contract remain unchanged; Reinsurance means starting all over again.
(6) Optional clause of valueless loss. Except for short-term insurance, after the insured pays the premium for a certain period (generally 2 years), if the contract is terminated or terminated in advance, the cash value of the life insurance policy will not be lost, and the insured or the insured has the right to choose the treatment method of the cash value of the policy. In order to facilitate the insured or the insured to know the amount and calculation method of the cash value of the policy, insurance companies often attach a cash value table to the policy.
(7) Policy loan terms. The loan clause of the policy stipulates that the insured can apply for a loan from the insurer with the policy as collateral if there is temporary economic need after paying the premium for several years. Generally speaking, the loan amount does not exceed the cash value of the policy. The insured shall pay off the payment within 3 1 day after the insurer issues the repayment notice, otherwise the policy will be invalid. When the insured or beneficiary receives the insurance money, if the loan principal and interest on the policy have not been paid off, the loan principal and interest shall be deducted from the insurance money.
(8) Policy transfer terms. As long as the rights of the beneficiary are not infringed, the life insurance policy is transferable. If the transfer is based on immoral or illegal considerations, the court will make a negative decision; If the designated beneficiary is irrevocable, the policy may not be transferred without the consent of the beneficiary. Usually, the transfer of insurance policy can be divided into absolute transfer and mortgage transfer.
Absolute transfer is the complete transfer of the ownership of the policy to the new owner. Absolute transfer must be made while the insured is alive. In the case of absolute transfer, if the insured dies, all the insurance money will be paid to the transferee.
Mortgage transfer takes the policy with cash value as the credit guarantee or mortgage of the insured, that is, the transferee only enjoys part of the rights of the policy. In the case of mortgage transfer, if the insured dies, the transferee gets the transferred insurance money, and the rest still belongs to the beneficiary.
After the transfer of the insurance policy, the applicant or the applicant shall notify the insurer in writing.
(9) suicide clause. The suicide clause stipulates that if the insured takes effect in the policy or is reinstated? Suicide within 2 years, regardless of mental health, the insurance company will not pay the insurance premium, only return the premium paid to the beneficiary. It is an exemption clause. If you commit suicide two years later, the insurance company can pay the insurance money according to the contract.
War clause. The war clause stipulates that during the validity of the insurance contract, if the insured is killed or disabled due to war or military action, the insurer shall not be liable for paying the insurance money.
(1 1) accidental death clause. The accidental death clause stipulates that the insured dies within a few days (usually 90 days) after a completely unexpected and serious accident occurs within the validity period of the policy, and the beneficiary can get several times the insurance money. The insurance premium paid is generally 2 ~ 3 times the insured amount. The 90-day period is stipulated in this clause because if you die after a long period of accidental injury, the cause of death will inevitably include the factors of disease. Therefore, death more than 90 days after the accident is not accidental death, and no accidental death insurance is paid.
(12) beneficiary clause. Beneficiary clause is a specific provision on the designation, qualification, order, change and rights of beneficiaries in life insurance contracts. Beneficiary is a very important person in life insurance contracts, and there are beneficiary clauses in life insurance contracts in many countries.
Beneficiaries in life insurance are usually divided into designated beneficiaries and unspecified beneficiaries. Designated beneficiaries are divided into original beneficiaries and subsequent beneficiaries according to the order of creditor's rights. Many countries stipulate in the beneficiary clause that if the beneficiary dies before the insured, the rights of the beneficiary will be transferred back to the insured, and the insured can designate another beneficiary. This redesignated beneficiary is the successor beneficiary. When the insured specifies the beneficiary without a will, the legal heir of the insured becomes the beneficiary, and the insurance money becomes the insured's inheritance.
(13) Optional reward terms. The optional dividend clause stipulates that the insured can enjoy the dividend right of the insurance company if he is insured with dividend insurance, and there are different ways to choose this right. Dividend sources of dividend policy are mainly three kinds of differential income, namely spread income, dead differential income and fee differential income. The spread is the difference between the actual interest rate and the predetermined interest rate; Death difference income is the income generated by the fact that the actual death rate is less than the predetermined death rate; The cost difference is the difference between the actual cost rate and the predetermined cost rate. But in essence, the dividend comes from the premium paid by the insured, because compared with the non-dividend policy, the dividend policy adopts a more conservative actuarial method, that is, it adopts a higher predetermined mortality rate, a lower predetermined interest rate and a higher predetermined expense rate.
(14) Optional clauses of insurance payment. The most basic purpose of life insurance is to provide a reliable income for the beneficiary when the insured dies or reaches the agreed age. In order to achieve this goal, the policy terms usually list the options of insurance compensation for the insured to choose freely. The most commonly used insurance payment methods are as follows:
① One-time cash payment. This method has two defects: it can't play a full role in protection when the insured or beneficiary dies or the insured beneficiary dies soon; The insurance money received by the beneficiary cannot exempt the creditor's rights.
② Interest income model. In this way, the beneficiary will leave the insurance premium as the principal in the insurance company, and the insurance company will pay it to the beneficiary regularly according to the pre-determined guaranteed interest rate. After the death of the beneficiary, his successor can receive all the principal and interest of the insurance money.
③ Regular income model. This method is to deposit the insurance money in the insurance company, and the beneficiary chooses a specific period to collect the principal and interest. Within the agreed time, the insurance company will pay on schedule in the form of annuity.
④ Fixed income model. This method is based on the needs of the beneficiary's living expenses to decide how much to receive each time. The payee will receive the money on schedule until the principal of the insurance premium is received in full. This method is characterized by the fixed amount of payment.
⑤ Lifetime annuity. In this way, the beneficiary insured a life annuity insurance with the insurance money received. After that, the beneficiary will receive the annuity on schedule until his death. One difference between this method and the first four methods is that it is related to mortality.
(15)*** Same as disaster clause. * * * The same disaster clause stipulates that as long as both the first beneficiary and the insured died in an accident, it is presumed that the first beneficiary died first if it cannot be proved who died first. The appearance of this clause simplifies the problem and avoids many unnecessary disputes.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.