We can identify three basic types of life insurance: policies for the case of death, for the case of life insurance policies and enterprises.
Policyholders in the event of death: are a type of life insurance that make the insurance company pays the insured benefit for death of the insured. Insurance in the event of death, in turn, can be divided into other categories may be temporary or lifetime. These temporary policies are “pure risk” or “grant” and ensure that the insurer shall pay the beneficiary a lump sum if the death of the successor within the expiry date of the contract. So if you do not experience the death of the insured person within the deadlines established by the insurance policy, the insurance company does not pay any capital or income. In life insurance policy whole life, however, that the policies “to provide safe,” the insurance company pays the insured benefit regardless of when the occurrence of the insured person dies.
Policies for the case of life: are a type of life insurance contract are that the insurance company shall pay in respect of the insured person, of a capital or an annuity in the event that the insured is still alive at the end that is established by the insurance contract. This type of insurance provide financial coverage for the years that follow.
Mixed policies: however, are a type of insurance contract that combine the features of the policies in the event of death and for the case of life insurance policies. The insured person is paid a certain sum of money in the event that the insured is still alive at the end which was established in the insurance contract (similar to life insurance policy). At the same time, the beneficiary is paid a lump sum if the insured person’s death occurs during the term of the insurance contract (similar to life insurance policy). We can identify two main types of insurance enterprises: policies mixed immediate and mixed fixed-term policies.
Important is the assurance of survival, that is insurance in which the payment of capital shall be the death of the insured, provided that at that time is another person’s life. With regard to the death by suicide of the insured, as a rule, the insurer is discharged from the payment if the event occurred earlier than two years after conclusion of the contract, unless otherwise agreed.
The amount of the insurance premium is based on the age of the insured, health status and the same morbid past. The award is divided into pure or premium rate. The pure premium refers to the principal risk taken by the insurer. The award is unique, or periodic (annual, etc …): only if paid at once or once in a while. E ‘periodic if paid in annual, semiannual, etc. … The policies must also provide for cases of redemption and reduction of the sum insured is the possibility to quickly recover a portion of the premiums paid or to continue in insurance for a lesser sum, proportion of the premiums paid.
Each insurance company, depending on the branch that is, sets of charges, that is the draw diagrams or tables which are in fact established the awards to be paid to ensure a unified capital. The premium rate is composed of one part to cover the risk to the insurer and a part used to cover the risks of the company or to produce a profit for the year. The pure premium is calculated according to mathematical or the laws of mathematics and actuarial is used to determine the portion of the premium to cover the risk. The remaining part of the premium rate is the so-called margin. The premiums that insurers apply are fixed and are based on fully funded system. There are cases in which the premiums are calculated for consecutive age of the insured. Of course, in this case, they are low at young ages, but increase with increasing age of the insured. If the premium were to remain constant during the natural age of the insured, you should reduce each year, in inverse proportion to the increase in mortality rates, the sum insured in case of death.
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