Mixed Life Insurance

Mixed life insurance is a type of personal insurance that combines survival insurance and death insurance. Mixed life insurance provides for the payment to the beneficiary of insurance coverage either during the survival of the insured until the expiration of the insurance contract , or in the event of disability due to an accident, or the death of the insured during the term of the insurance contract ^{[1] [2] [3]} .

A mixed life insurance contract is concluded with individuals . When selecting insurers, the insurer is guided by three criteria: the age of the insured and the state of his health as the main factors determining the level of mortality, as well as the citizenship of the insured. The initial age is determined by the insured receiving legal capacity as established by law and the presence of an identity passport. The insurers must be citizens of the Russian Federation, however, foreign citizens and stateless persons are also accepted for insurance if they permanently reside in our country. The amount of insurance liability determined by mixed life insurance covers the following insured events.

1. In connection with the survival of the insurance contract. Here the insured event, for the consequences of which the sum insured is paid, is the survival of the insured until the last day of the validity of the insurance contract . This means that the contract must be valid on the day of survival, that is, be paid in full by insurance premiums (monthly or one-time contributions). The right to receive the survival insurance sum comes on the day after the expiration of the insurance period. In this case, payment in the amount of the full insurance amount is made regardless of the fact that the insured during the contract period received the insurance amount for the consequences of the accident. This condition follows from the net rates laid down in insurance tariffs ^[4] .
2. Due to loss of health from an accident. If during the term of the contract with the insured an accident occurs that entails the specified consequences as a result of an injury or other damage to the body, then the corresponding part of the health loss or the full insurance amount is paid. The principles for the payment of insurance compensation in the event of an accident are the same as in the case of accident insurance .
3. In connection with the death of the insured. The occurrence of this insured event provides for the payment of the sum insured to the posthumous recipient designated during life (that is, the person in whose favor the contract was concluded in case of death of the insured). The cause of death, as a rule, can be any, with the exception of specially agreed.

Since insurance contracts are concluded without prior medical examination of the insured and without medical contraindications for insurance, with the exception of those stipulated in the insurance rules , there is a need to limit insurance liability for deaths from illness in the initial insurance period. This ensures that mortality among insured is kept at the tariff level. For example, the rules may stipulate that if the death of the insured occurred during the first six months of insurance against a malignant tumor or cardiovascular disease , the sum insured is not payable. The limitation of insurance liability during this period also extends to suicide , although the last sanction is hardly reasonable. Starting from the seventh month, there is full insurance liability for death from illness. Throughout the insurance period, sanctions are applied related to death as a result of an intentional crime and a number of other specified offenses committed by the insured. For all these sanctions, instead of the insurance amount, the redemption amount for the insurance period paid on the day of death is payable ^[4] .

Thus, for mixed life insurance, there is insurance against death for any reason. Mixed life insurance contracts may be concluded for various periods. The vast majority of policyholders prefer a term of insurance that allows them to optimally combine their savings and risky interests.

In accordance with the insurance conditions, policyholders can pay monthly insurance premiums, usually one month in advance (for example, in October for November, etc.). Contributions may be paid by bank transfer by deducting them from wages or by transferring from the deposit of the insured to a savings bank; cash to an insurance agent (inspector) under a receipt of the established form; according to the payment booklet by the insured himself to the savings bank . It is allowed in some cases to transfer contributions by mail.

The procedure for concluding an agreement may consist of the following: the policyholder, upon submitting an application for insurance of the established form, pays the first (or one-time) installment if this application indicates payment in cash. After registration of the personal account, the policyholder is awarded an insurance certificate certifying the execution of the contract. If, in accordance with the insurance application, contributions are paid in cashless form, then the first and subsequent contributions are withheld from the insurer's salary and transferred to the account of the insurance company. After the first installment is paid, the policyholder is awarded an insurance certificate. Failure to pay the next insurance premium entails the termination of the contract after the period specified by the insurance rules (for example, three months after the last installment has been paid). The specified period (three months), not paid by the installments, during which the validity of the contract is maintained, is necessary in order to enable the policyholder to keep the contract due to the occurrence of temporary circumstances that entailed the non-payment of installments (material difficulties, business trip, relocation or work, etc.).

In connection with the formation of a reserve of contributions for mixed life insurance, the policyholder acquires the right to receive the redemption amount accumulated by the time the contributions were stopped. However, in order to ensure the stability of the insurance portfolio and create conditions for the policyholder to become accustomed to paying contributions in the initial period of insurance, the terms of the contract may provide for the payment of the redemption amount under the contract, which was valid for a certain period (for example, at least 6 months). The redemption amount is issued within three years from the date of termination of the contract. If the insured has not received the amount due to him during his lifetime, it shall be paid to his legal heirs.

Change in insurance conditions. In cases where the policyholder is burdensome to pay insurance premiums from the sum insured for which the contract is concluded, he may be granted the right to reduce the amount of the sum insured. The redemption amount is calculated from the difference between the previous and new insurance amounts for the period paid by the contributions and, at the request of the insured, is given to him or credited to the payment of future reduced contributions. If the policyholder considers the size of the sum insured under the contract insufficient, he may conclude a second contract or several contracts that are in force at the same time, since under the personal insurance contracts the insured amount is not limited.