Life insurance

Life insurance

Life insurance - personal insurance subsector, which includes a plurality of types of insurance under which the insurer pays the insured person or his assignee a sum of money when the survival of the insured up to a certain age, event, or date, or in case of his death.

For life insurance companies include these types: endowment insurance; insurance in case of death; life insurance risk (eg, in case of death and disability); life insurance with a declining contribution; insurance of children; insurance up to a certain period of time (education insurance, scholarship funds for furnishing the household, etc.); life insurance with decreasing sum insured when the insured is a person who has taken a loan or making a purchase on credit; Mixed life insurance; deposit insurance and others.

Most types of life insurance are long-lasting, which allows insurers to accumulate substantial financial resources to obtain additional income from the investment of insurance premiums reserve.

Life insurance as a form of accumulation is important for insurers, resulting in the most industrialized countries insurers performing operations in life insurance (pension, annuity), is forbidden by law to engage in other types of insurance.

As for other types of personal insurance, life insurance, its condition, the tariff rates and insurance amounts are determined by agreement between the parties to the insurance contract.

The basis of a voluntary personal insurance is life insurance, the types of which provide for the payment of the insurance sum insured or other persons in connection with: the achievement to an agreed period or event;. with the onset of the insured person's death.

1.2.Formy and types of life insurance

In modern conditions of life insurance is an obligation of the insurer on insurance payments in the following cases:

survival due to the contract term;

human security in old age or disability;

of death;

provision of credit, primarily mortgage;

The insurance risk in life insurance is the duration of human life. Risk is not death itself, and the time of its occurrence, because the insurance risk has two aspects:

die at a young age, or earlier in life expectancy;

live in old age, with a long life expectancy, which requires obtaining regular income without continuing work