Insurance Cash Value
The cash surrender value refers to the insured or the insurance company to lift the insurance contract, the insurance company to refund that portion of the amount insured. Under normal circumstances, insurance companies, the probability of the occurrence under the insurance policy to determine the premium rates, the high probability of the accident, the premium rate, and vice versa premium rate is low.
But in life insurance which, as Paying period is usually quite long, as the insured person's age increased, the possibility of his death will be increasingly higher premium rates are bound to rise gradually until the close to 100%, this rate not only the insured unbearable, but the insurance has lost meaning. To this end, insurance companies, often used in practice "balanced premium" approach, with mathematical calculations would be required to pay all the premiums the insured throughout the period of smoothing Contributions to enable the insured to pay the premium are the same each . The insured person was young, the probability of dying is low, the insured pay a premium than the actual needs of the multi-, multi-year insurance companies pay the premium to be accumulated. Of the insured person in old age, death probability of the high premiums paid by policyholders current is insufficient to cover current compensation, less than part of the insured person will be just a young man by the overpaid premiums to be filled. This part of the premium overpayment together with accrued interest, accumulated annual cumulative, that is, the policy's cash value, equivalent to a savings insured the insurance company.
Returned to the conditions of the policy's cash value
Under the "Insurance Law", the insurance company in the following circumstances occurs, the contract shall be returned to the insured the policy's cash value:
1, insurance companies, according to the regulations lift the insurance contract, and the insured has to pay the full premiums for at least two years:
2, to death as the payment conditions of insurance contracts, since the contract within two years from the date of the establishment of the insured person committing suicide:
3, the insured person caused an intentional crime of its own disability or death, and the insured has to pay the full premiums for at least two years:
4, the insured cancel the contract, and has been for more than two years to pay the full premium.
In addition, the "Insurance Law" also stipulates that the insured, the beneficiary of the insured person deliberately caused the death, disability or illness, the insurance company undertakes no obligation to pay the insurance payment. Pay the full amount has been insured for more than two years of insurance premiums, the insurance company shall be in accordance with contract rights to the other beneficiaries of the cash value of insurance refund.