The risks covered by life insurance policies have several features that distinguish them from other insurance policies. The following are the most important of these features:
1. In the event that the risk of death is covered, we find that the document does not cover the accident of death per se, but rather covers the date of the accident. The risk of death by its nature is certain to occur in the long term, but the occurrence of death on the date of a probable event can happen at any time.
2. The dangers of life relate to a person’s life or a lack of income.
3. The probability of death increases for any person with increasing age, due to the weakness of the human body and its increased exposure to diseases, especially aging diseases. Therefore, the relationship between the possibility of death and the age of man is a direct relationship, especially after a person reaches a certain age.
4. The loss resulting from the verification of life and death risks is always a total loss.
5. It is difficult to estimate the value of a person, and therefore it is left to the trustee to determine the amount of the insurance according to the ability of the trustee to pay the installments on time.
Features of life insurance documents:
The characteristics of life risks are reflected in the insurance policies that cover those risks. The following are the most important features of life insurance documents:
1. Most life insurance documents are from the documents specified value in advance, i.e. the insurer is obligated to pay the entire amount of the insurance to the insured or the beneficiary specified in the contract upon the occurrence of the insured accident, knowing that there are some documents with variable installments not specified in advance in an accurate manner that I do not recommend. at all.
2. Life insurance documents are long-term documents that may extend to cover the life of the trustee, that is, life insurance documents are distinguished by the length of time and therefore they are considered investment documents.
3. As a result of what life insurance policies are distinguished from, they are long-term documents, and as the probability of death increases with increasing human lifespan and the desire of the insured not to increase the insurance premiums collected from the insured from one year to the next, he collects equal premiums from the insured for a period of time Insurance, and therefore these premiums are greater than the risk in the early years and less than the risk in recent years, which results in the necessity of reserving the increase in the premiums for the first years in a special account called the sports allowance and the insurer invests them in order to help them pay the premium deficit in recent years.
4. The insurance company cannot compel the insured to continue to pay the periodic installments, and stopping the payment of installments results in the expiry of the policy, and the insured’s right to obtain the liquidation value as a result of creating the sports allowance in life insurance policies or the continuation of the policy with a new low insurance amount.
5. Life insurance policies offer a degree of flexibility in the coverage that they provide for those wishing to purchase life insurance in terms of its different types and the insurance protection provided by each of them.
Life insurance documents
The life insurance policy is a contract whereby the insurance company commits to pay the insurance amount to the insured, his heirs, or the beneficiary or beneficiaries specified in the policy, in the event of the death of the insured over his life, or if the insured has reached his life to a specific age in the policy, in exchange for The insured has to pay a single installment that is paid once upon contract or annual installments.
Life insurance policies can be divided according to the benefits that life insurance beneficiaries get into three main sections:
The first section: insurance policies whose sums are paid to the heirs and beneficiaries in the event of the death of the insured, such as temporary insurance documents, life insurance policies.
The second section: Insurance policies whose amounts are paid in case the insured survives, such as pure endowment insurance policies and life payment contracts (pensions).