What life insurance is for

Life insurance provides financial protection for the family in the event of the death or loss of working capacity of the insured and, in savings programs, also helps build capital by a certain date. The payment allows loved ones to repay a loan, maintain their usual standard of living and pay for the children's education. A policy is especially important for the family's main breadwinner, for mortgage and other large-loan borrowers, for business owners, and for those planning long-term goals. In Kazakhstan life insurance is provided by companies holding a licence in the "life insurance" class.

Main types of programs

  • Risk (term) insurance — protection for a fixed term. A payment is made only if an insured event occurs; no savings are accumulated. This is the most affordable way to obtain a substantial sum insured.
  • Endowment (savings) insurance — combines protection and capital building: at the end of the term the insured receives the sum insured, and if an insured event occurs the payment goes to the beneficiaries.
  • Investment insurance — part of the premiums is directed into investment instruments; the return depends on their results and is not guaranteed.
  • Borrower insurance — the sum is linked to the size of the loan, and the beneficiary is usually the bank for the amount of the debt.
  • Annuity insurance — regular payments to the insured over a set period or for life.

You can add to the main program the risks of disability, critical illness, injury and hospitalisation as a result of an accident, as well as a waiver of premium in the event of disability.

What is usually not covered

  • death by suicide within the period set by the rules;
  • events connected with illnesses of which the insured was aware and did not disclose when concluding the contract;
  • consequences of alcohol or drug intoxication;
  • participation in hostilities or riots, and commission of an intentional crime;
  • dangerous sports and occupations not declared to the insurer.

What determines the price

The size of the premiums is determined by the age and sex of the insured, health, occupation and hobbies, the sum insured, the term of the contract, the set of risks and the payment frequency — a single premium, annual or monthly. For large sums the insurer may ask for a medical examination. In savings programs the guaranteed return and the size of the surrender value on early termination of the contract are also important.

How to choose a program and what to check in the contract

  • Purpose and term — protection for the loan period, providing for children until they come of age, saving for retirement.
  • Sum insured — whether it is sufficient to cover the family's obligations and expenses for several years.
  • Beneficiaries — who will receive the payment and whether they can be changed during the term.
  • Surrender value — how much can be returned on early termination, especially in the first years of the contract.
  • Exclusions and questionnaire — whether the information on health, occupation and sports is stated correctly.
  • Payment procedure — the list of documents and the time for reviewing the claim.

What to do if an insured event occurs

  1. The beneficiary or the insured notifies the insurer of the event within the period set by the contract.
  2. They collect the documents: an application, ID, a death certificate or medical reports, documents on the causes of the event, and proof of the right to receive the payment.
  3. They hand the package to the insurer and keep copies.
  4. If necessary, they provide additional information at the insurer's request.

How Polis Re can help

Polis Re helps determine the right sum insured and type of program, compares insurers' terms on risks, exclusions, surrender values and the payment procedure, and explains the difference between guaranteed and non-guaranteed parameters. You can estimate the approximate cost of protection in the life insurance calculator, personal accident insurance can supplement it, and health insurance will cover medical expenses. To select a program, send a request to the broker.