what is the cash value of endowment insurance annuity? Why can the annuity value be returned? These are all topics of common concern. Let's take a look at them in detail.
But in life insurance, because the payment period is generally long, with the increase of the age of the insured, the possibility of death will be higher and higher, and the insurance rate will inevitably rise to nearly 100%. Such a rate, not only the policyholder can't bear it, but also the insurance has lost its significance.
For this reason, insurance companies often adopt the method of balanced premium in actual operation. Through mathematical calculation, all premium that the policyholder needs to pay will be shared equally in the whole payment period, so that the premium paid by the policyholder in each period is the same.
When the insured is young, the probability of death is low, and the premium paid by the policyholder is more than the actual need. The premium paid by the policyholder will be accumulated by the insurance company year by year. When the insured is old, the probability of death is high. The premium paid by the policyholder in the current period is not enough to pay the current indemnity. The insufficient part will be made up by the premium overpaid by the insured in the young. This part of overpaid premium, together with the interest generated by it, is accumulated every year, which is the cash value of the policy, equivalent to a kind of savings of the policyholder in the insurance company.
According to the insurance law, an insurance company shall return the cash value of the policy to the applicant in accordance with the contract when:
1. The insurance company cancels the insurance contract according to the regulations, and the applicant has paid the premium for more than two years;
2. In a contract where death is a condition for payment of insurance benefits, the insured commits suicide within two years from the date of the contract;
3. The insured intentionally commits a crime, resulting in his own disability or death, and the applicant has paid the premium for more than two years;
4. The applicant cancels the contract and has paid the premium for more than two years. In addition, the insurance law also stipulates that if the applicant or beneficiary intentionally causes the death, disability or disease of the insured, the insurance company shall not be liable for the payment of the insurance benefits. If the applicant has paid the premium for more than two years, the insurance company shall return the cash value of the insurance policy to other beneficiaries with rights in accordance with the contract.