Benefits Available When Purchasing a Retirement Insurance Product

According to Circular 115/2013/TT-BTC, enterprises providing pension insurance products must ensure benefits for the insured. The insurer can design the pension insurance product but it must include periodic pension benefits and risk insurance benefits, specifically:

Illustrative image (source internet)

For periodic pension benefits, the insurer must ensure the following benefits for the insured:

- Periodic pension payments until the insured's death or a minimum of 15 (fifteen) years, depending on the agreement in the insurance contract;- The insurance enterprise and policyholder agree on the amount of each pension payment period, number of pension benefit periods;- Accumulate interest from the unpaid portion of the pension benefits for the policyholder, but not lower than the minimum committed investment interest rate agreed upon in the insurance contract.

For risk insurance benefits, the insurer must provide during the premium payment period and can continue to provide these benefits during the pension benefit period, depending on the agreement in the insurance contract. Risk insurance benefits include at least the following benefits:

- Funeral allowance benefits: Upon receiving a death benefit claim, irrespective of whether it falls within the coverage scope or not, the insurer must immediately pay the funeral allowance to the beneficiary in the amount agreed upon in the insurance contract.- Death or permanent total disability insurance benefits:

- When the insured dies or suffers permanent total disability within the coverage scope and period, the insurer pays the insurance money to the beneficiary as agreed in the insurance contract;- The policyholder is entitled to select the amount of insurance when entering the insurance contract and can adjust the insurance sum during the contract's validity period as agreed in the insurance contract.

More details can be found in Circular 115/2013/TT-BTC, effective from October 15, 2013.

Thu Ba

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