Various terms often appear in the world of insurance, which can be a bit confusing. But don’t worry, the “survival insurance” we are going to talk about today is actually not difficult to understand! Through this article, we will explain the meaning of this term to you in a relaxed language, so that you can have a clearer understanding of your rights and interests in insurance.

What is survival insurance?
When the insured is still alive during the validity period of the insurance contract or after the payment period expires, the insurance company will pay insurance benefits regularly in accordance with the contract. This insurance benefit is called "survival insurance benefit."

Is the survival insurance benefit received every year? How is survival insurance calculated?
There are usually three simple condition settings under which survival insurance benefits can be started to be collected and the frequency of collection:

The first is to pay the insurance premium every year after the expiration of the insurance premium period. That is, when the insurance contract expires and the insurance contract is still alive, the insurance company will start paying survival insurance benefits.
The second is to pay annual benefits after the agreed policy year. For example, when the policy reaches the 25th year and is still alive, the insurance company will start paying survival insurance benefits.
The third method is that during the validity period of the policy, before the insurance age reaches the agreed age, the insurance company will pay the survival insurance once every 5 years after expiration of a certain number of policy years and still alive. For example, before the insurance age is 99 years old, the insurance company will pay the survival insurance benefit every 5 years.
The calculation method of each life insurance payment is mostly "insured amount" multiplied by a multiple or percentage, such as "insured amount x 0.3 times" or "insured amount x 0.5%".

There are also some insurance products that will change the calculation method of survival insurance benefits starting from a certain policy year. For example, during the validity period of the policy, if the policy year 1 to 10 is still alive, the insurance company will pay "insured amount x 0.5%" every year. As a survival insurance benefit, in the 11th policy year, the survival insurance benefit will be paid based on "insured amount x 1.2%".

Who can receive survival insurance benefits?
"Insured" refers to the object to be protected by the policy. The insured must receive the corresponding insurance benefits from the insurance company only if an event stipulated in the insurance contract occurs. Therefore, as long as the insured meets the conditions for receiving survival insurance benefits in the insurance contract, the insurance company should pay the survival insurance benefits. As for the role in the contract that can receive insurance benefits, they are called "beneficiaries" in insurance. Usually, the beneficiary of the insurance money is the insured person himself.

There is another important role in an insurance contract: the "guarantor". This role has the right to change the contract and the obligation to pay premiums. For life insurance benefits, the insured, the insured and the beneficiary are usually the same person. However, the beneficiary can be changed as long as the guarantor agrees. However, when the insured and the beneficiary are different, the beneficiary should pay attention: once the beneficiary receives an insurance payment exceeding the gift tax exemption amount of 2.44 million per year, gift tax will be withheld by the state.

The difference between "survival insurance benefit" and "maturity insurance benefit"
People often confuse "maturity insurance benefit" with "survival insurance benefit". To receive "maturity insurance benefits" and "survival insurance benefits", the conditions for the insured to still be alive must be met. The difference between the two is that "maturity insurance premium" refers to the insurance premium that will be received after the payment period expires. The time point of concern is only when all premiums have been paid. The "survival insurance benefit" may be received after the payment period expires or periodically during the payment period. In other words, the survival insurance benefit usually does not only receive one insurance benefit.