Buzz
When engaging in life insurance (LIC), you often encounter insurance advisors and agents mentioning the term 'contract maturity. Despite explanations, understanding what 'contract maturity' entails, along with the methods and procedures for insurance contract maturity, remains a challenge.
Concepts of Life Insurance Maturity and Latest Procedures for Insurance Contract Maturity
Understanding your concerns, Mytour has curated an article to share an overview of insurance contract maturity. By reading and exploring the article, you will gain a precise understanding of the contract maturity date and the amount received upon contract maturity, aiding you in optimizing and conveniently planning your personal and family finances.
1. What is Insurance Contract Maturity?
Insurance contract maturity is the date when the insurance contract concludes. Upon insurance contract maturity, you will receive the entire accumulated value along with the investment interest that the insurance company allocates to you as agreed in the contract. From this point, you can contact the insurance company to receive your insurance amount.
The contract maturity period depends on the insurance product you participate in. Common contract maturity milestones include 10 years, 20 years, lifetime, etc. However, in some cases, when you need to withdraw life insurance funds prematurely, the insurance company will process the maturity procedures and pay out insurance benefits based on your withdrawal request.
Insurance contract maturity applies exclusively to life insurance. For other types of insurance such as non-financial insurance, health insurance, social insurance, etc., the concept of contract maturity is not applicable.
Exploring the concept of life insurance maturity
Note: If this is your first encounter with life insurance and you want to delve deeper into the concept, target audience, and benefits of participating in life insurance, you can find valuable information in the article What is life insurance? Which type to buy in the previous articles by Mytour.
2. Procedures for insurance contract maturity
At the contract maturity, to facilitate payment and insurance settlement, you need to prepare certain types of personal identification documents proving legal ownership for the insurance contract inspection by the insurance company. The company will cross-check and proceed with the contract payment accordingly.
* Types of documents to prepare:
- National identity card/identity card of the contract participant. Note: The ID card must be valid and match the information registered on the insurance contract. In case of changing from ID card to identity card, you need to bring the confirmation paper to the insurance company to request a change.
- Certificate of insurance (Pink paper with the insurance company's stamp, provided by the insurance company along with the contract)
- Health examination certificate at medical facilities
- Illustrative contract sheet with the contract owner's specimen signature.
- Individual's signature matching the stored signature at the insurance company.
* Steps and procedures for the maturity of Prudential, AIA, Manulife insurance contracts, etc.
- Step 1: Check the effective date of the contract, the maturity date of the insurance contract on the document, and contact the insurance company for guidance on settling the insurance contract.
- Step 2: Fill in personal information on the insurance benefit settlement request form for the insured person according to the template provided by the insurance company. Note: The declared information must match the details on the previous insurance contract.
- Step 3: The insurance company verifies customer information, contract maturity date as per regulations, and provides the result to the insured person. If valid, the request for contract payment will be accepted for processing. Otherwise, the insurance company will reject the contract payment.
- Step 4: The contract owner follows the instructions of the insurance company and registers the payment method for the insurance contract according to regulations.
Note:
- Each insurance company will apply a different method of paying out matured insurance contracts. To know the exact procedures for the maturity of your insurance contract, you can contact the company's hotline or customer care. Before contacting the insurance company's hotline, prepare information about the insurance contract number, ID card/personal identity card number for verification and guidance by the hotline operator.
- Common methods of paying out matured insurance contracts include: Cash payment at the main office of the insurance company, through the postal system, or transfer to a bank account.
Documents and procedures to comply with for the maturity of insurance contracts to ensure payment when due.
3. Calculating the maturity amount of the insurance contract.
Before signing the contract, individuals, insurance agents will provide you with a simulated value of money, interest rates, and the corresponding amount at different contract values. Moreover, the contract specifies the minimum and maximum amounts that can be received upon contract termination.
Based on the contract value illustration, you can calculate and assess the financial benefits of insurance, considering whether it aligns with the personal and family financial goals, and make a decision on whether to participate in this insurance package or not.
Typically, both domestic and international life insurance companies apply the formula for calculating the maturity amount of insurance contracts as follows:
Calculating the maturity amount for AIA, Manulife, Daichi insurance contracts.
Participating in life insurance is a secure financial investment method to protect yourself and your family from potential risks. Before joining insurance, carefully read and understand the contract, grasp basic concepts within the contract (What is life insurance maturity, contract issuance date, effective date of insurance contract, maturity date of insurance contract, interest rates, exclusion clauses, etc.) to identify benefits and disadvantages, consider rights and choose the most advantageous insurance package for yourself.
In addition to life insurance, Vietnam currently has various insurance forms such as social insurance, fire and explosion insurance, health insurance, auto insurance, motorcycle insurance, etc. Among them, social insurance is a state-owned insurance type, established and managed by the state. If you want to learn more about the concept of social insurance, you can explore further here.
