NOVIS Life Insurance: The Widest Coverage

What makes NOVIS’ offer unique and how to tailor the insurance contract

NOVIS’ policy includes both life insurance and the opportunity to invest in an outstanding range of insurance funds. Based on its innovative approach, NOVIS has created a unique offer aimed at making the client fully satisfied from a long-term perspective. The product is designed to be fair, transparent, and flexible.

There are some features which significantly differentiate NOVIS Life Insurance from its competitors’ products, making it attractive both to clients and the distribution network alike.

Individual risks packages ensure the client will be covered in almost any situation

Broad insurance coverage is offered in the form of individual risk packages. The client can choose the set of packages and define the insurance sum for each separately as well as for each insured person included in the contract.

Insurance packages include:
  • Death;
  • Illness, operations and long-term care (including critical illness, surgeries, hospitalization and inability to work);
  • Accident, extended accident coverage and accidental death (including death by accidents, permanent consequences of accidents, and a daily benefit during the treatment period for small accidents); and
  • Disability. *
Choosing a specific package, the insured person receives complete coverage based on the type and severity of the insured event and its consequences in almost any situation. In contrast with competitors’ insurance products, the policyholder will never face the situation where he or she is not able to receive coverage for an insurance event because of a poorly set contract selecting the cheapest risks which most probably will never occur.

Valid all over the world

NOVIS Life Insurance policy is valid worldwide. Wherever the insured person is travelling or living, he or she can rely on an insurance policy which is not limited by geographical borders. As people are becoming more open to career and/or life opportunities outside their home country, it is reasonable to invest in a long-lasting life insurance contract which will provide coverage for each point on the map.

High degree of flexibility to change contract anytime with no extra cost

NOVIS insures people of all ages (starting from birth) with no limits of contract validity. It even provides the opportunity for children to be policyholders.

As life situations and priorities change over time, nearly every element of NOVIS’ Life Insurance policy can be adjusted on a monthly basis with no additional charges. **

The set of risk packages as well as the insurance sum for each can be adapted to current requirements. For example, a younger person with kids to take care of and mortgages and loans to pay would require a higher coverage in case of death and other risks than a person in middle age with no dependants and/or significant financial obligations.

Risk assessment can be changed only in a client’s favour

Initial risks cannot be reassessed to the disadvantage of the client during the entire duration of the insurance contract. Even if the insured person chooses a more risky job, becomes keen on extreme sports, or their state of health worsens, the conditions remain the same.

The initial risk assessment can be changed only in a client’s favour. For example, if he or she changes to a less risky job or gives up a certain sport. The client just needs to provide NOVIS with the relevant information.

In case the insurance sum needs to be increased, NOVIS will assess risks based on the current situation offering new conditions.

Fair cost of individual risks

With NOVIS, the younger the client is the less he or she pays for individual risks. This means more goes toward the insurance account balance, which is invested to bring a higher potential return. When monthly deductions start to increase with the age, it can be reasonable for an older person to adjust the insurance sum for individual risks.

NOVIS’ approach is much fairer in comparison with common risk life insurance that applies equal risk cost for people of all ages. Over a long-term perspective, the client experiences the positive dynamics of the insurance account, and can count on surrender (if required).

No income check when an insurance event occurs

NOVIS doesn’t check the level of a client’s income when an insurance event occurs. It can be done only at the stage of signing the contract (if needed).

This helps to avoid additional complications during an already stressful situation. It is fair for a person to receive the full coverage he or she counts on if the agreed premium is paid regularly regardless of the fact that income can decrease by the time of an insurance event.

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Defining Insurance Coverage Sum

float: right; margin-left: 15px; margin-top: 5pxWhen generating insurance modelling in the NOVIS calculator or filling a proposal for a conclusion of an insurance contract, it is important to define the insurance sum to meet client’s current requirements.

There are various approaches to setting the amount of a particular individual risk coverage, but no rule exists. Several factors need to be taken into consideration, which help to set the reasonable amount. These include:

Whether the insured person and his or her family have an opportunity to save money for a “rainy day”, the number of breadwinners in a family, flexibility to rearrange lifestyle if needed, someone to support them in hard times, and how much they are ready to pay monthly for their life insurance. These and many other particulars can influence how the insurance contract can be set.

Insurance sum for death

It is reasonable to insure the life of a person, whose loss would cause a significant income decrease for close ones.

The insurance sum can be defined based on the following reasons to insure death or its combination.

If the reason is to cover mortgage or loan – its value can be the starting point to set up the insurance sum. The sum can be set as gradually declining. The less the debt the lower the coverage that is required, hence the lower the premium to be paid.

In cases where the policyholder is a breadwinner willing to ensure the financial stability of the depending family members in the worst case, his or her annual income can be defining. The total income for two to five years can be a reasonable insurance sum to support close ones for those first years, so they can have enough time to readjust their lives.

One more reason can be to cover significant expenses for a funeral (if required).

Insurance sum for illnesses, operations and long-term care

When choosing the reasonable insurance sum to cover illnesses (including critical illnesses such as myocardial infarction, cancer, HIV, coma and others), operations due to illness, hospitalisation and inability to work for over 30 days it is important to consider a temporary or permanent decrease or loss of income as well as increase of expenses connected with a particular insurance event.

Depending on the case, the expenses may include treatment, rehabilitation, medicine, medical equipment, travel to the required medical institution, medical care of a higher standard and many other expenses which cannot be predicted in advance.

It can be reasonable to count the insurance sum based on annual income for three years. Taking monthly income equal to 1 000 Euros as an example, the insurance sum can be 36 000 Euros. The daily sickness allowance which is 1 ‰ of the insured sum will be 36 Euros. So, in this case the insured person will receive a sum enough to compensate a monthly income during an inability to work for 30 days. At the same time, if one of the critical illnesses is diagnosed a person under 65 years old would receive 100 % of the insurance sum for this insurance risk.

Insurance sum for accident, extended accident coverage and accidental death

Similar to illnesses, accidents can cause temporary or permanent inability to work leading to a decrease or loss of income. There can also be additional expenses connected with treatment, nursing and rehabilitation.

Referring to the example above, a person insured for 36 000 Euros will be able to replace usual income receiving a daily benefit counted as 1 ‰ of the insured sum in case of essential treatment. It can be especially relevant if there are permanent consequences due to an accident. In this case, the daily benefit can be paid for a year after an insurance event.

If the insured person dies within a year due to an accident, the total insured sum (36 000 Euros in the given example) for the accident is paid to the beneficiary. If the person already has insured their death, it may not be required to set as high of an insurance sum for accidental death as the coverage for both insured events is paid simultaneously. Otherwise, it can be reasonable to think over how much money would cover the loss of the person caused by accident according to the same approach used when evaluating the insurance coverage for death.

Insurance sum for disability

Disability can be covered with the same sum as death, because it leads to serious consequences and may require rearranging life significantly.

The insured person can count on a complete insurance sum to be paid if his or her inability to work is assessed at over 70 %. A doubled insurance sum will be paid if nursing care is needed at the same time.

So, referring to the same example, the person insured for 60 000 Euros (total income for 5 years), can receive a maximum coverage of 120 000 Euros in the worst case scenario of this insurance event.

In any case, the financial advisor and client should work together to find the best way to set the life insurance contract so that in an insurance event the most can be made out of NOVIS’ flexible and fair solution.

* Availability of the risk packages as well as insurance sum limitations may vary according to the General Terms and Conditions of an individual contract.

** Certain limitations and/or rules for the changes may apply according to the General Terms and Conditions of an individual contract. If the change of contract requires an increase in the agreed premium, acquisition costs may be increased as well. However, this increase would be significantly lower compared to the acquisition costs associated with a new contract.

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