Long Term Life Insurance with Bonus Payments – the unified program directed to provide insurance protection for a long period. The core of life insurance with bonus payments is ensuring reliable insurance protection with opportunity to accumulate the moneys, and financial stability in the future.
The main conditions of the insurance contract:
- Insurance period – from 2 to 20 years;
- The amount of the sum insured to be chosen by the Insured (customer), afterwards the Insurance company calculates the insurance premium. The amount of the insurance premium depends on sum insured, age of assured, period of insurance, and payment order;
- Installments to be done by one of following convenient manners: upfront, yearly, once in a half year, each quarter or monthly;
- The sum insured to be paid in the following cases (event insured):
- If the Assured stays alive till the end of the contract (where the sum insured equals to all installment plus bonus from the company);
- If the Insured dies (where the sum insured equals to all installments and additional bonus from the company in spite of when the insured dies and how many installments made);
- The age of Assured – from 18 to 60, and should not be older than 65 at the end of the insurance.
For the corporative customers this insurance program for the benefit of employees would be additional effective mechanism of ensuring the social protection to employees and their families which increase their commitment to the job and create additional motivation.
In the purpose of development of this field and increasing the social protection to the people of our country there were admitted the following additional tax remissions by the Government of the Republic of Uzbekistan:
- tax remissions applied to individuals: the sums of wages and other incomes of a physical person paid as an insurance premium for the long term life insurance are not subject to taxation (income tax, clause 28, article 179, Tax Code of the Republic of Uzbekistan);
- tax remissions applied to entities: the sums paid by a legal person as an insurance premium for the long term life insurances are referred to as other expenses (clause 33, article 145, Tax Code of the Republic of Uzbekistan);
- the expenses of a legal person paid as an insurance premium for the long term life insurance are not referred to as an income of a physical person (articles 307 and 172, Tax Code of the Republic of Uzbekistan).