The difference between voluntary surrender and automatic cancellation of the policy without payment

If you want to surrender the policy, the first thing that comes to mind must be, how can you get as much money back as possible? Here's a guide first::《 How to refund insurance surrender, how much can be refunded, and how to reduce surrender loss? 》

How much money can be refunded from the policy is divided into these three situations:

(1) Full surrender

There are generally three situations in which a policy can be surrendered in full:

1.Surrender during the cooling-off period

There is a hesitation period for buying insurance, if you are still in the hesitation period when you surrender the insurance, you can surrender the policy in full, and only deduct about 10 yuan of the production cost, usually the hesitation period is calculated after the contract receipt is signed, generally speaking, it is 10-15 days, and the contract will be written.

2.It is signed

Because some salesmen do not operate properly, the signature of the insurance contract is signed, and you can apply for a full refund at this time.

3.There is evidence

If there is evidence that the person violated the operation or deceived the consumer, you can also apply for a full refund.

(2) Refund of cash value

If the policy is surrendered beyond the hesitation period, only the cash value can be refunded, and only the savings life insurance has the cash value, such as whole life insurance, term life insurance with a term of more than one year, comprehensive insurance, long-term consumption critical illness insurance, savings critical illness insurance, endowment insurance, universal insurance and participating insurance, etc.; One-year medical insurance, accident insurance, etc., generally have no cash value.

If you want to surrender the policy and want to know the cash value of the policy, you can read the contract or call the insurance company **, and the calculation can be calculated using the following formula:

(3) Return of cash value + dividends

The cash value has been mentioned above, and here we will talk about dividends. The dividend will be divided into two parts, one part is the fixed insurance money to be given to the customer, and the other part of the insurance money to the customer will be different due to the different operating conditions of the insurance company, and this part of the uncertain insurance money is called the dividend. If you don't think you understand it very well, you can look here:

"Demystifying the Mystery of Dividend Insurance".

Obviously, if you surrender the policy beyond the hesitation period, the money that can be returned is less than the premium paid, which means that there will be a lossWhat are the details to pay attention to when surrendering an insurance policy? 》Hope!

There is a loss ...... in the early stage of surrenderIn the medium term, it can be recouped and there will be a ...... incomeHowever, the original intention of the insurance was to look at the protection, why should I refund it......If the policyholder still does not pay the premium after the 60-day grace period, if the contract is not automatically paid at the time of signing the contract, the insurance contract will be suspended. If you choose to pay the premium automatically and the policy has a cash value, the insurance company will automatically pay the premium according to the cash value and the contract is still valid. During this period, in the event of surrender or payment of insurance benefits, the insurance company will deduct the premium and interest paid when paying the cash value or insurance money to the policyholder.

If the cash value is exhausted within a certain period of time, the policy will be terminated. It should be noted that once the policy is terminated, the insurance company is no longer liable for any insured event that occurs thereafter. However, in any case, once the policy is suspended, the insurance company will send a letter to notify the policyholder.

The grace period is only 60 days after the insurance company is liable for the occurrence of insurance liability even if you do not pay the premium.

1. Can I get my money back after the policy is terminated?

1. Whether the money will be refunded after the termination of the insurance contract should be determined according to the specific type of insurance product. They are:

1) If it is a return-to-principal insurance, participating insurance, or storage insurance, the insurance company will refund the premium after the contract is terminated, and even the returned fee will be more than the premium;

2) If you buy consumer insurance, such as short-term accident insurance, this product will not be refunded after the contract is terminated.

2. Legal basis: Article 16 of the Insurance Law of the People's Republic of China.

If the insurer makes inquiries about the subject matter of the insurance or the relevant circumstances of the insured when concluding an insurance contract, the policyholder shall truthfully inform the insurer.

If the policyholder intentionally or due to gross negligence fails to perform the obligation of truthful notification as provided for in the preceding paragraph, which is sufficient to influence the insurer's decision on whether to agree to underwrite or increase the insurance rate, the insurer has the right to terminate the contract.

If the policyholder deliberately fails to perform the obligation to truthfully inform, the insurer shall not be liable for compensation or payment of insurance money for the insured accident that occurred before the termination of the contract, and shall not refund the insurance premium.

If the insured fails to perform the obligation of truthful notification due to gross negligence, which has a serious impact on the occurrence of the insured accident, the insurer shall not be liable for compensation or payment of insurance money for the insured accident that occurred before the termination of the contract, but shall refund the insurance premium.

2. How to surrender the insurance after the termination of the insurance contract.

1. The eligible person to apply for surrender is the policyholder. If the insured applies for surrender, the written consent of the policyholder must be obtained, and the policyholder shall clearly indicate who will receive the surrender money;

2. If the policyholder applies for surrender and the contract has been in effect for two years, the insurance company will refund the cash value of the policy after receiving the surrender application; If the premium payment is less than two years, the insurer shall refund the remaining part to the policyholder after collecting the insurance premium for the period from the date of commencement of the insurance liability to the date of discharge.

If you don't pay a fee, the policy is usually not automatically surrendered. However, you need to pay attention to the fact that if the insurance has not paid the premium, then after the 60-day grace period stipulated by the insurance, the insurance contract will be terminated and the policy will temporarily lose its validity.

Therefore, it is advisable for customers to pay the outstanding premiums as soon as possible within the 60-day grace period after they have missed the premium, so that they can continue to enjoy the insurance protection. Otherwise, as soon as the policy lapses, the insurance company will no longer bear the insurance liability (during the grace period, the insurance company will still bear the insurance liability, and in the event of an insured accident, the insurance company will still compensate according to the contract).

Of course, if you don't plan to pay any more premiums, you can also apply for a surrender of the policy. After the policy lapses, the insurance can also be surrendered. However, customers can still apply for reinstatement within two years from the date of temporary lapse of the policy, so customers can also choose to pay the premium in full and restore the validity of the policy within these two years.

After two years, the insurance will expire permanently and the customer will no longer be able to apply for reinstatement.

Extended Information] The meaning of the insurance policy refers to: the written proof of the signing of the insurance contract between the insurance company and the policyholder, which is the main form of expression of the insurance contract signed by both parties. The main contents included in the policy are:

1.A description of the insurance company and the policyholder on matters related to the subject matter of the insurance, such as the name of the insured, the name of the subject matter of the insurance, the amount insured, the premium, the duration of the insurance, etc.;

2.the rights and obligations of the insurance company and the policyholder and the insured;

3.Other important items to be aware of, such as insurance terms, policy changes, policy assignments, etc.

An insurance policy is the abbreviation of an insurance policy, which is a formal insurance contract signed between the insurer and the policyholder. The insurance policy is the main evidence for the insured to claim compensation from the insurer when the insured suffers losses due to an accident and is also the basis for the insurer to collect insurance premiums.

The insurance policy must clearly and completely record the rights and obligations of both parties to the insurance, and the policy mainly contains the names of the insurer and the insured, the subject matter of the insurance, and the amount insured. Insurance premiums, warranty periods, limits of liability for compensation or payment, and other prescribed matters.

The surrender rate is generally around 70%. The policyholder can unilaterally terminate the insurance contract during the hesitation period, that is, the policyholder can surrender the insurance and terminate the contract at any time. ‌

Requirements and procedures for handling surrender of insurance:

The applicant is eligible to apply for surrender. If the insured applies for surrender, the written consent of the policyholder must be obtained, and the policyholder must clearly indicate who will receive the surrender money;

If the policyholder applies for surrender, the contract has been in effect for two years and the payment has been paid for two years, the insurance company will refund the cash value of the policy after receiving the surrender application, and if the policyholder has paid the premium for less than two years, the insurer shall refund the remaining insurance premium to the policyholder after collecting the insurance premium from the date of commencement of the insurance liability to the date of discharge.

The surrenderer shall provide the following documents when handling the surrender:

If the insured requests to surrender the policy, the applicant shall provide the application for surrender with the written consent of the policyholder;

The insurance policy provided by the surrenderer to prove the conclusion of the contract and the proof of the last payment;

Proof of identity of the policyholder;

If the policyholder or the insured entrusts another person to handle the matter on his behalf, the power of attorney of the policyholder or the insured shall be provided, and the identity certificate of the principal shall be provided.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Summary. Yes, the policy will be automatically cancelled without payment. This is a provision of the insurance contract, and if the premium is not paid on time, the insurance company has the right to rescind the contract and cancel the validity of the policy.

When purchasing insurance, you need to understand the terms and conditions of the insurance contract to ensure that you pay your premiums on time to ensure the validity of the policy.

Yes, the policy will be automatically cancelled in the event of non-payment. This is a provision of the insurance contract, and if the premium is not paid on time, Zhenyu Insurance Company has the right to terminate the contract and cancel the validity of the policy. When purchasing insurance, you need to understand the terms and conditions of the insurance contract to ensure that you pay your premiums on time to ensure the validity of the policy.

Can you elaborate on that a little bit more?

Yes, the policy will be automatically cancelled without payment. The insurance company has the right to terminate the contract in accordance with the provisions of the contract and to take the accompaniment to eliminate the validity of the garbled policy. Make sure to pay your premiums on time to keep your policy valid.

Before renewing the policy, the insurance company will often send a text message to remind the insured customer to pay attention to whether the bank account balance is sufficient. "Unless the customer submits a surrender request before the expiry of the policy contract, the contract will be automatically renewed by default after the expiration of the policy. "No agreement is required for auto-renewal, and the auto-renewal period is 60 days if the customer does not apply for early surrender."

In other words, if the policyholder does not apply for surrender, within 60 days after the expiration of the policy, as long as there is money in the bank card bound to the policy, the insurance company is eligible to deduct the insurance amount that Xiang Chunshan should have.

At present, most insurance companies implement a renewal process in which if the policyholder does not go through the termination procedure, the insurance company will be deemed willing to renew the policy until the customer submits a written application.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"