Life Insurance

Life Insurance - Insurance that provides protection for long-term interests of the insured. Provides, as a rule, regular long-term financial relationship between the insured and the insurer.
Life insurance is an individual insurance policy that the biometric risk (usually death or longevity) of the insured person to hedge economically.

Life insurance is insurance of persons, because the insured risk is located directly in the person. In the life insurance contract is an insurance benefit agreement, which will be paid within the contractually agreed insurance claim to the policyholder or other beneficiary. In general, life insurance is completed as the sum insured, the insurance service is provided that is in the insurance case in the amount of a contractually agreed insured sum in cash. The amount of the insurance claim by the actual damage is not important.

Depending on the contractual agreement, death may occur during a specified time (life insurance), experience of a certain time (endowment insurance), the entry of diseases, the professional or disability or other, be determined directly with human life related risks as an insurance case and thus trigger a performance.

Private pension funds are also part of the life insurance. As the power of a regular pension payment by the life insurer is due, hence the name «pension».
One of the main purposes of life insurance is the accumulation of certain sums of money, such as retirement, or age, or other events in the life of the insured.

Contributions are generally paid on a regular basis (e.g., monthly) during the storage period (from date of contract of insurance until the insured event). During the entire storage period, the insurer enters into transactions with the client's money, putting them in a variety of assets (bank deposits, securities, real estate and other assets). As a result, by the time the insured event (endowment insured up to a certain period) accumulated well over the amount of accumulated contributions, by capitalization (interest income), the accumulated amount.

The insurer pays the insurance coverage is usually in the form of life annuity (lifetime of financial rent). Sometimes a contract may provide for lump sum the whole sum insured, then all obligations of the insurer under the contract ends.

In life insurance realized cumulative functions of insurance products are also developed in which long-term life insurance with an investment component (unit-linked insurance plan) are combined in one program.

Life insurance in many developed countries is seen as part of the pension system.

Types of life insurance

On the market there is a large range of life insurance that vary different levels of insurance protection and flexibility, i.e. ability to meet individual client requirements.

At the conclusion of insurance is an important primary purpose of insurance. Risk insurance is used exclusively to cover all risks and premiums paid are just the risk component. Capital insurance guaranteeing the payment of a sum or income either at the end of insurance period, or amounts paid to the beneficiaries in the event of death of the insured. If necessary, evaluate their embedded devices is a suitable investment life insurance, which allows you to invest money in its sole discretion.

- Risk - is used primarily to ensure that persons close without saving.
- Capital - combines a broad health and life savings with the right, the law guaranteed value for money + 2.4% share of the revenues of the insurer.
- Flexible - comprehensive security risks to the needs of insured persons.
- Investment - higher returns on investment than the life insurance capital through investment in assets.
- Pensions - the basic objective is to increase living standards in the elderly.

Advantages of life insurance

Conclusion of a life insurance for the insured person and his surroundings for financial security in case of unforeseen events. It is not a cheap thing, so it is good to consider what coverage the insured person expects.

Life insurance is necessary to conclude if the person is working in hazardous environments, where the family is financially dependent of such person, when planning to purchase their own home mortgage, the use of leasing, credit lines, etc.