Insurance premium is relevant

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Recently, more and more often you can hear from the TV screen or from other sources of information about insurance. As for the mandatory part of it, this is easier (there is no choice: to have a policy or not to have it). But the voluntary part of possible protections requires greater awareness of citizens in this area. Let's talk about endowment life insurance. About its importance and necessity for everyone.

History

Life insurance began in England in the 18th century. Already in the next century, this idea was embodied in Germany, France, the USA, and Tsarist Russia. The main principles of work are used in the modern world. 90% of the inhabitants of Europe and America are covered by life insurance today. In Russia, this figure is extremely low.

Working principle

The principle of insurance as such is simple and clear. A person pays an insurance premium (this is a certain amount of money that is paid to an insurance company in order to receive an insurance service). An insured event has occurredstipulated by the contract - the client or his heirs (in the event of the death of the insured person) receive a certain amount. As for endowment life insurance, there is both insurance and money savings. Since the insurance premium (insurance premium) is a person's monetary investment for the purpose of making a profit. The company invests clients' money in various financial instruments (real estate, securities, bank deposits, etc.). At the end of the contract, the amount of insurance premiums paid plus investment income is returned to the person. In the event of the death of the insured before the expiration of the policy, money in the amount of the agreed sum insured is paid to the beneficiaries (as a rule, these are family members).

Popularity

In Russia, on voluntary insurance, in general, a person spends up to 2% of earnings. Whereas in most European countries, citizens spend 1/3 of their monthly income on this. The main reason for the unpopularity, according to insurers, is the ignorance of the population about this product and its intricacies. As a result, the fear that people need to give back money for 10 or more years is much higher than the desire to protect themselves and their loved ones, while creating capital for themselves. Nevertheless, the life insurance market is developing rapidly. According to the Association of Life Insurers, insurance premiums in 2013 increased by 40.6% compared to 2012. Of these, the indicator of the amount collected for life insurance of citizens increased by 59.9%. Over the past four years, the market has become six times larger.

Children's programs are in demand in Russia. In this case, the insurance premium is the future of the child, which for Russians always remains question No. 1.

Importance

What does the program of endowment life insurance give to a person?

• Financial protection in case of death, disability, various diseases.

• Possibility of monetary savings taking into account inflation.

• Obtaining investment income.

• Create we alth for the future for yourself with the right to inherit beneficiaries.• Create we alth for your children.

Guarantees

Over the past 200 years, not a single life insurance company has gone bankrupt in the world. This is facilitated by a clear control over their activities by the state and the reinsurance system.

Opportunities

In order to always have money, you need to be able to properly manage it. Even from a small income, you can set aside 10%. To make an insurance premium means to pay first of all to yourself, and then to everyone else for certain benefits. The cash reserve will help in the most important life situations.