There are two types of life insurance - voluntary and compulsory. In the first case, the person himself chooses the risks against which he wants to be insured. In the second, the availability of insurance is an integral element for the implementation of a certain type of activity.
Voluntary life insurance
Almost anyone can insure their lives. Certain serious health problems can be a significant limitation or reason for denying insurance. The essence of voluntary life insurance is that in the event of death or death of the insured person, the relatives specified in the contract receive certain compensation.
Sometimes people do not even suspect that they are subject to compulsory life insurance. When traveling by public transport, the life of each passenger is insured from the National Assembly.
Possible risks are selected by the insured independently. For example, the most common types of life insurance are indemnity contracts for death from a terminal illness or accident. The amount of insurance is also determined by the insured person personally.
Traditionally, a life insurance contract is concluded for a period of one year, but if desired, it can be renewed an unlimited number of times. The amount of the insurance premium directly depends on the amount for which life is insured. Tariffs and additional conditions may differ in different insurance companies.
To conclude a voluntary life insurance policy, you only need a passport, and in some cases, you may need a doctor's opinion on the state of health. For example, if you are insuring against death as a result of an incurable disease, then you will need to attach a document to the contract confirming that you are completely healthy at the time of insurance.
A separate type of voluntary life insurance is the accumulative option. In this case, the program is calculated for a long period, and the insured person must make contributions in accordance with the schedule.
Compulsory life insurance
Compulsory life insurance is provided only in special cases. The most common of these is the occurrence of credit liabilities. If you take out a loan for small amounts, then the bank, as a rule, offers you to conclude a life insurance contract on a voluntary basis. However, if you decide to take a mortgage or a large loan, then the presence of a policy in such a situation is required.
While working in some enterprises, the conclusion of a life insurance contract is also mandatory. First of all, this applies to work at hazardous facilities, where the likelihood of an accident or work injury is very high. Life insurance in this case is usually carried out collectively and paid in full by the employer or the state.
