What is life insurance?
Life Insurance - this accumulation of funds, for example, for retirement, adulthood, marriage or other events in the life of the insured.Endowment life insurance - the kind of long-term life insurance, in which the sum insured is paid to the policyholder when the survival of them before the deadline or in case of death of the insured to his heirs.Life insurance for a certain period of time (Term Life Insurance) can be very convenient and cheapest way to protect your family and save money on insurance premiums.Life insurance contract is usually concluded for a period not less than one year, so life insurance can be combined accumulative and risk functions (such type of insurance is an endowment insurance in case of death and endowment, it may also include also accident insurance).
What determines the cost of life insurance on Average?
Rates for life insurance account for 4-10% of the sum insured, depending on the age (the younger the policyholder, the lower rate), sex (female tariff is lower than that of men), and the health of the insured. In determining the value of a life insurance mortality tables used, which is calculated based on the expected size of the insurance payment.The most expensive and the most important thing in life - it's a family for which you work hard and strive for success, as relatives and people close to you first of all need your protection and care. Therefore, one of the main tasks - to secure the most expensive and the people with dignity and a stable future.Therefore, it is worth thinking ahead and create financial protection, which is one of the options - it is cumulative or risk life insurance.If you have got a job, which is more dangerous than your previous one, for the term of your work you will be more profitable to have a life insurance policy. Once you leave a dangerous work, feel free to cancel his temporary insurance without any penalty payments.The advantages of insurance for a certain period a lot. First of all, this type of insurance is very simple and intuitive, making it accessible to virtually everyone.
Risks that covers life insurance:
The main risk, which protects the life insurance is a risk of death of the insured person and related financial losses of beneficiaries. Normally, the risk of death include the risks of death from an accident, illness or wrongful acts of third parties. The risk of suicide can be included in the contract, but only in exceptional cases, such as credit insurance. The inclusion of this additional risk must be accompanied by reservations. In addition, may be included in the contract risks permanent disability, survival, etc.
The insured event on the program of life insurance is:
- Survival to the end of the insurance period;
- Death of the insured (can be "for any reason");
- Death of the insured due to an accident, an accident (insured amount is doubled);
- Loss of health and disability from an accident (disability).
How does life insurance?
The policyholder pays the insurance payment, calculated by the actuary of the insurance company on the options outlined in a life insurance contract. And the insurer, in turn, under the contract (10 or 20 years) is committed to the money made to protect the policyholder, the insured earn investment income, the average value of which before the crisis was 14-17% in UAH (including 4% guaranteed ).Insurance companies, according to the Law of Ukraine "On insurance", guaranteed investment return of up to 4%, and the remaining bonuses - accrued to the insurer as a result of the investment of the insurance company.
Contract classical life insurance is that in case of death of the insured to provide the specified beneficiary compensation for the loss. In the classical life insurance contract we are talking about insurance in case of death. By signing this agreement, the period of insurance can be chosen in such a way that it covers, for example, the repayment period of the loan or the time when your kids are still growing themselves do not work.
EmoticonEmoticon