Can people under the age of 18 buy life insurance in Vietnam?

Can people under the age of 18 buy life insurance in Vietnam?

Article 9 of Circular 67/2023/TT-BTC provides for the minimum age for purchasing life insurance as follows:

The policyholder, the insured person, and the beneficiary of a life insurance contract, a health insurance contract

1. The policyholder of a life insurance contract, a health insurance contract must meet the following requirements:

a) Is a legal entity established and operating legally in Vietnam, or an individual in Vietnam who is at least 18 years of age and has full civil capacity at the time of signing the insurance contract;

b) Meets the conditions for purchasing insurance according to the insurance rules, conditions, and terms.

2. The insured person of a life insurance contract, a health insurance contract is the person whose life, health, or life expectancy is insured under the insurance contract.

3. The policyholder must have an insurable interest with the insured person as prescribed in Article 34 of the Insurance Business Law.

4. The beneficiary of a life insurance contract, a health insurance contract is the person designated by the policyholder to receive the insurance proceeds in accordance with the agreement in the individual insurance contract or the insured person in the group insurance contract designates to receive the insurance proceeds in accordance with the agreement in the group insurance contract. The designation or change of beneficiary in a life insurance contract, a health insurance contract must comply with the provisions of Articles 41 and 42 of the Insurance Business Law.

Therefore, the person who can purchase life insurance must be a Vietnamese citizen who is at least 18 years of age and has full civil capacity at the time of signing the insurance contract.

In addition, to be able to purchase life insurance, the buyer must also meet the conditions according to the insurance rules, conditions, and terms.

In conclusion, people under the age of 18 are not allowed to purchase life insurance.

Can people under the age of 18 buy life insurance in Vietnam? - Source: Internet

Can life insurance premiums in Vietnam be paid in a lump sum?

Pursuant to Article 37 of the Law on Insurance Business in 2022 stipulating payment of life insurance premiums as follows:

Payment of life insurance premiums

1. The insurer can pay insurance premiums on a one-off basis or in installments according to the time limit and approach agreed upon in an insurance contract.

2. In the cases where insurance premiums are paid in installments and the policyholder pays one or several installments of insurance premiums, if the policyholder is unable to proceed to pay further, the extended duration of payment of premiums shall be 60 days.

3. Parties can agree to restore the effect of the insurance contract that is unilaterally terminated under clause 1 of Article 26 herein within 02 years of termination when the policyholder has paid outstanding debts on insurance premiums.

4. Where the policyholder defaults on insurance premiums or fails to pay insurance premiums in full, the insurer shall not be allowed to arbitrarily deduct premiums from the surrender value of the insurance contract without the policyholder’s consent, and take legal action to request the policyholder to pay insurance premiums. This regulation shall not apply in case of group insurance.

Therefore, the policyholder of life insurance is allowed to pay the premium once or multiple times according to the term.

What are cases of null and void insurance contracts in Vietnam?

Pursuant to Article 25 of the Law on Insurance Business in 2022, an insurance contract shall be made null and void in the following cases:

1) The policyholder has no insurable interest at the time of conclusion of an insurance contract;

2) No subject matter of insurance exists at the time of conclusion of an insurance contract;

3) At the time of conclusion of the insurance contract, the policyholder has the knowledge of the policy event that occurs;

4) Objectives and contents of an insurance contract are in contravention of prohibition clauses and social ethics;

5) The insurer, the foreign non-life insurer’s branch and the policyholder enter into the fraudulent insurance policy;

6) The policyholder is a minor; the person who is incapable of civil acts; the person who have cognitive and behavioral difficulties; the person whose capacity to perform civil acts is restricted;

7) When being entered into, an insurance contract contains any confusion that causes one or more parties to fail to achieve the purposes of entering into that contract, unless the contractual purposes of the contracting parties have been achieved, or the contracting parties can take immediate remedial actions against such confusion to make the purposes of entering into the contract successfully achieved;

8) The insurance contract is concluded by fraud, except as provided in Article 22 of the Law on Insurance Business in 2022;

9) The insurance contract is concluded under threat or pressure;

10) The policyholder lives with health condition related to cognitive disability and impulse control disorder when entering into the insurance contract;

11) The insurance contract is in contravention of regulations.

Best regards!