How to Prepare a Life Insurance Policy?

0) Brief Information: What is Life Insurance? How to Prepare for It?

Definition: Life insurance is a contract that provides coverage against the risks of the insured's death within a specified period, survival beyond a specified period, or a combination of death and survival.
Preparation steps (practical checklist):

Product selection: ☐ Death ☐ Accumulative/Survival ☐ Mixed ☐ Contributory/Pension-like ☐ Additional coverages (Critical illness, disability, etc.)
Identification of the parties: Policyholder, insured, beneficiary(ies), and their respective shares.
Medical risk assessment: Health declaration and, if necessary, medical examinations/reports.
Coverage Amount & Duration: Insurance value (₺/€), policy duration (years), start and end times.
Premium & payment plan: Cash/installment payments, due dates, late payment and termination terms.
Beneficiary designation: Name/Surname/Turkish National Identity Number/Share ratios, conditions for change.
Exceptions & waiting periods: War, nuclear, suicide, AIDS/nuclear, etc.
Loan-purchase-reduction: After how many years, with what formula, and at what interest rate?
Personal Data Protection Law (KVKK) and information disclosure: Information text and obtaining explicit consent (if required).
Delivery & Effectiveness: Acceptance of the offer, collection of the first premium, effective date.
Compensation process: Notice period, document list, payment period, dispute/appeal resolution.

Note: In the following draft, please clarify fields such as “(… days/year)”, “(… rate)”, “(… hours)” according to your organization's practices and product requirements.

1) POLICY SUMMARY (Section to be filled in)

Insurer (Company): [Title, MERSIS/Contact]
Policyholder: [Name-Surname/Title, Turkish National Identity Number/Tax Identification Number, Address]
Insured Person: [Name-Surname, Turkish National Identity Number, Date of Birth]
Beneficiary(s) & Share: [Name-Surname/TR ID Number, %…]
Insurance Type: ☐ Death ☐ Survival ☐ Mixed ☐ Additional Coverage(s): [……]
Insurance Amount (Main Coverage): [₺/€ …………]
Duration: […… years]; Start: [……/……/…… 12:00] – End: [……/……/…… 12:00]
Premium: [Total ₺/€ ………], ☐ Cash ☐ … installments; Due dates: [……]
Currency/Index: ☐ TL ☐ Foreign Currency (… currency) ☐ Indexed (… index)
Tax/Expense: [Breakdown, if any]
Additional/Technical Documents: ☐ Health Declaration ☐ Doctor's Report ☐ Test Results ☐ Information Notice

2) DEFINITIONS

Insured: The person whose life is insured.
Policyholder: The person who insures the insured's interest with the insurer by paying the premium.
Beneficiary: The person(s) who are not a party to the contract but are entitled to receive compensation if the risk occurs.
Risk: The event covered by the contract (death/survival/additional coverage).
Insurance Amount: The amount to be paid if the risk occurs.
Mathematical Reserve: The mathematical reserve set aside according to technical principles in cumulative contracts.
Policy: The written document of the insurance contract.

3) SCOPE OF INSURANCE

3.1. Subject: The insurer provides coverage for (i) the death of the insured, (ii) living beyond the specified period ("survival"), and (iii) both possibilities (mixed coverage) within the period and conditions agreed upon in the contract. 3.2. Minors/Incapacitated/Lack of Legal Capacity: Insurance conditional on death is void; however, insurance can be taken out on life. In these cases, if death occurs, the mathematical reserve (and any profit share) at the time of death will be paid. 3.3. Geographical Limit: Unless otherwise agreed, it is valid worldwide . 3.4. Start-End: It starts and ends at 12:00 PM Turkish time on the dates written in the policy (unless otherwise arranged). Coverage ends upon the occurrence of the risk. 3.5. Increasing the Insurance Amount: Upon the request of the insured and the approval of the insurer, a new health declaration/report will be obtained if necessary.

4) EXCLUSIONS FROM COVERAGE

Unless otherwise agreed, the following are excluded from coverage:

Aviation: If the insured dies during flights other than commercial passenger flights (pilot, crew, parachute, glider, etc.), only the mathematical reserve will be paid.
Suicide: In the event of the insured's suicide (regardless of mental health status) , if death occurs within (… years), the precautionary benefit will be paid ; if death occurs after (… years) of uninterrupted validity, the full insurance benefit will be paid.
Fault of the beneficiary: If the beneficiary kills the insured or participates in their killing, the beneficiary forfeits the proceeds; the proceeds to the heirs .
War/military operation: In case of death during war or due to military operations, reserve interest plus technical interest up to the payment date will be paid (unless otherwise stated in the contract).
Nuclear/AIDS: Except for those for therapeutic purposes, precautionary payments are made in case of death from nuclear hazards or AIDS (unless otherwise specified).
Use of nuclear, chemical, or biological weapons (unless specifically guaranteed otherwise).
Death occurring in the course of a crime (unless otherwise guaranteed under specific conditions).

Note: Exceptions and waiting times should be clarified on a product-by-product basis.

5) PREMIUM – COMMENCEMENT OF LIABILITY – DEFAULT

5.1. Initial Premium & Effectiveness: The initial premium/installment is paid upon policy delivery . If the offer is not rejected within (… days) after it reaches the company records, and the initial premium has been collected , the contract is deemed to have been concluded. If death occurs before the initial premium is paid, the contract is null and void. 5.2. Long-Term Policies (>*1 year): For premiums not paid on time, the insurer will send a registered/notary notice to the address provided, giving a period of (1 month) ; if not paid, the policy will be terminated . 5.3. Short-Term Policies (≤1 year): Default occurs due to premiums not paid on time; if payment is not made within (… days) following the default, coverage will be suspended for (… days) ; if not paid at the end of this period, termination will occur without notice . 5.4. Payment Documents: Documents received from PTT/other collection channels, provided they are stated in the policy, are considered receipts . 5.5. Withdrawal/Early Termination: Unless otherwise agreed, if the policyholder withdraws/failes to comply with the commitment before (… years) have passed , they cannot claim back the premium paid (see preemption provisions for cumulative products).

6) OBLIGATION TO DISCLOSE

6.1. When the Contract is Established: The policyholder/insured/representative is obligated to provide accurate and complete information regarding all circumstances that may prevent the contract from being concluded or may result in it being concluded under more onerous conditions. 6.2. In Case of Breach: The insurer may withdraw within (… months) of learning of the breach or may request a premium difference within (… days) . If there is intent, the right to withdraw and request a premium difference is reserved even if the risk has materialized. 6.3. If the risk occurs before learning of the breach or within the withdrawal/premium difference period: Compensation will be paid proportionally according to the premium paid / premium due (if there is no intent). 6.4. Continuous Validity: If the contract has remained in effect continuously for (… years), withdrawal is no longer possible; however, the insurer may request a premium difference within (… days) ; if the policyholder does not accept, proportional payment will be applied. 6.5. Excessive Premium Refund: If incomplete/incorrect declarations have resulted in excess premiums, the excess premiums will be refunded on a daily basis .

7) NOTIFICATION OBLIGATION DURING THE CONTRACT PERIOD

Changes affecting the risk (such as change of occupation, risky hobby, change of smoking) must be reported within (… days) without the insurer's permission

Aggravating circumstances: The insurer 8 days or a premium difference ; if not accepted, termination occurs. Rights are forfeited if deadlines are missed.
Mitigating change: Premium refunds will be calculated on a daily basis from the date of the refund until the end of the period .
If the risk occurs during the termination/notice period: Proportional compensation will be applied.

8) OCCURRENCE OF THE RISK – COMPENSATION PROCESS

8.1. Notification: Beneficiaries must notify the insurer within (… days) of learning of the risk . 8.2. Documents: a) Policy (signed declaration if lost), b) Certified copy of population register (from the Population Registry Office), c) Cause of death: Doctor's report/burial permit , d) Declaration of absence : Court decision, e) Inheritance certificate if no beneficiary is designated , f) Health record/hospital status report if deemed necessary by the insurer . 8.3. Payment Period: After all documents are submitted and the compensation is finalized, the insurer will pay within (… days) . A receipt will be given to the beneficiary/insured . 8.4. Survival Payment: At the end of the period, the policy + certified copy of the population register is sufficient.

9) REVIVAL OF THE POLICY – REDUCTION – PURCHASE – LOAN

9.1. Revival: Following termination/reduction due to non-payment of premiums ; if the accumulated premiums + legal late payment interest are paid in full within (… months) following the due date of the first unpaid premium, it will be activated. If the period expires, the insurer may request a new examination . The insured must be alive at the time of revival . 9.2. Free Insurance (Reduction): Unless otherwise agreed, if at least (… years) of premiums have been paid and the right of repurchase has not been exercised; the policy will be converted to premium-free ; the insurance amount will be reduced (according to the tariff technical principles). 9.3. Purchase (Reduction): Unless otherwise agreed, a policy with at least (… years) of premiums paid will be purchased at its repurchase value upon the request of the insured and the return of the policy (formulas/tables in Appendix-…). 9.4. Lending (Loan): A loan can be given on a policy with at least 3 years of premiums paid . Interest (…/year) ; if not paid on time, a notice period + (… months) ; If payment is still not received , the policy will be automatically repurchased ; the remaining balance will be returned to the policyholder.

10) TRANSFER OF RIGHTS AND OBLIGATIONS, CHANGE OF BENEFICIARY

10.1. Transfer: The rights/obligations arising from this contract may be transferred. 10.2. Beneficiary Designation/Change: The insured may designate/change the beneficiary initially or subsequently. However, this is not possible if there is a "waiver of the right to change + delivery of the policy to the beneficiary" .

11) LOSS OF POLICY

In case of policy loss, company records and the insured's signed loss form will be used as the basis; a second copy will be prepared (costs are borne by the insured).

12) NOTIFICATION/REPORT – ADDRESS CHANGE

Notification of insured/policyholder status is made to the company headquarters notary public or registered mail . Insurer notifications are made to the address specified in the policy using the same method. of an address change results in liability for the insured. Notification by hand with signature or by telegram is also registered mail .

13) GDPR – PRIVACY

The insurer and those acting on its behalf personal data and trade secretsconfidential. An Information Notice and (if necessary) Explicit Consent shall be obtained; data processing and transfers in accordance with the legislation .

14) DISPUTE – JURISDICTION – APPLICABLE LAW

In lawsuits filed against the insurance company, of the insurer's headquarters or the insured's domicile; in lawsuits filed by the insurer, of the defendant's domicile The applicable law Turkish Law.
(Optional) ☐ An arbitration/mediation clause (Insurance Arbitration Commission, etc.) can be added.

15) STATUTE OF LIMITATIONS

Claims arising from insurance contracts (… years) . (Please clarify the time period according to the product and legislation.)

16) SPECIAL CONDITIONS (Product/Company Based)

Automatic Coverage Increase: ☐ CPI/PPI ☐ Fixed %… ☐ None
Waiting Periods: [For critical illness, suicide, AIDS, etc. … months/years]
Currency/Exchange Rate: [Exchange rate/source to be used for account/payment]
Exclusions from Coverage: [High-risk sports, occupational risks, etc.]
Additional Coverage Requirements: [Definitions and documents related to disability, critical illness, accidental death, etc.]
Technical Interest/Profit Share: [Distribution policies, calculation method, reporting, if any]

17) COMPENSATION PAYMENT PRINCIPLES – DOCUMENT & CONTROL

Document completion: The insurer will make sure to request reasonable and necessary documents at once ; the reason for each additional request will be stated in writing
Review period & payment: Compensation will be paid within (… days) once the documents are complete and sufficient .
Interest: Annual interest ( at the rate of (...) will be charged for compensation not paid on time (legal/contractual).
Payment method: To the beneficiary/heirs; distribution; if there is no single beneficiary, to the heirs of the estate.

18) RIGHT OF WITHDRAWAL (If there is remote/off-site installation)

The insured, acting as a consumer, has the right to withdraw from contracts concluded remotely or outside of business premises within (… days) without giving any reason . In case of withdrawal, the remaining balance will be refunded after deducting the risk premium corresponding to the elapsed period + expenses . (Please clarify the time period/conditions according to the legislation.)

19) SIGNATURE & DELIVERY

The parties declare that they have read, understood, and accepted the policy, general and specific terms and conditions, information notice, and (if applicable) explicit consent text.

Policyholder: ……………………… / Signature – Date
Insured (if separate): ………………… / Signature – Date
Insurer (Authorized Representative): ………………… / Signature – Date

APPENDICES

Appendix 1: Product Brochure & Sample Illustration (explanatory dividend assumptions/technical interest rate).
Appendix 2: Purchase/Reduction/Loan Value Tables (by year).
Appendix 3: Health Declaration Form (clear and understandable questions; important ones highlighted in bold).
Appendix 4: Information Notice (processing purposes, legal grounds, transfer, storage, rights).
Appendix 5: Compensation Document Checklist (based on death/survival/additional coverage).
Appendix 6: Beneficiary Designation/Change Form (with share percentages).
Appendix 7: Address/Contact Information Change Form.

Application Notes (Practical)

Duration and figures (e.g., suicide exemption 1–3 years, notice 10–30 days, payment 10–15 business days) are determined according to your product and risk appetite; regulatory compliance should be checked.
regarding the obligation to declare information should be kept simple and understandable; "important circumstances" should be listed.
If there are multiple beneficiaries, a percentage share should be specified; the modification procedure should be clear.
Loan/purchase calculations should be presented transparently with an additional table ; expense deductions for early withdrawal should be clearly stated.
Under the Turkish Personal Data Protection Law (KVKK) , medical data is considered special category data ; appropriate legal grounds and technical/administrative safeguards must be included.
The option of using the Insurance Arbitration Commission to resolve disputes is often beneficial in terms of speed.

Life insurance, Legal Consultancy, Istanbul Lawyer, policy, insurance, insurance law, contract

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