The Role, Concept and Main Types of Life Insurance

KEY WORDS

1 Transfer between funds Asset Fund Unit Linked Life Insurance 

2 Accumulated Units Accident Insurance Conditional Annuity Accidental

3 Death Term Insurance Accidental Disability Annuity Sickness Insurance Beneficiary Maturity Initial Sum Insured Insurance Term Initial Units Insured

5 Event Term Insurance Sum Insured Hospitalisation Daily Allowance Insurance Benefit Critical Illness Insured Term Fix Insurance Age of Insured Surgery 

7 Benefit Table of injuries Pension Insurance Pure Endowment Insurance with Premium Refund at Death Sum Insurance Whole Life Insurance Critical Illness,

9 Dread Disease Health insurance Disability Waiver of Premium Unit Disability Annuity Offer Price Policyholder Life Insurance Policy Endowment Insurance Top-up Payment  

In the following sections of the book we will take the life insurance from the earlier mentioned solutions that facilitate the planning of the life cycle, and discuss it in more detail.

1. First we’ll try to find the concrete situations of life and the concrete types of life insurance that can be used to achieve individual (in some rarer cases organisational) goals. We have to mention right at the beginning that nowadays life insurance, and so the concept of life insurance is changing, and the boundaries between different financial institutions are loosening up, and we currently are in the state of redefining these boundaries. 

2. This way the formerly unambiguous situation, when life insurance meant a group of products and also a well defined institution is starting to disappear. The following discussion focuses primarily on the product, briefly mentioning the most important institutional specialities, and at the same time referring to the changes that both are currently undergoing. 

3. Behind the change in consumer demands – e.g. the change in demand for financial products – we can discover a kind of order. We see the same order in the specialisation of institutions on different financial areas. Residential banks are specialised in handling mostly daily, short term financial affairs, that is in handling cash flows, deposit collection (also short term), that is logically connected to these and consumer loans (again short term). . 

3. One of the fundaments of the integration of financial areas of our days is that compared to the above, in-between needs have emerged that are close enough to all, so it is not evident which existing institution should satisfy them. Whichever way the current definition of life insurance should change, it seems a fix characteristic that it supports the realisation of “strategic” 

4.Goals of the life cycle requiring a greater volume of money, and it neutralises the dangers threatening the realisation of these goals. So the areas accessible by life insurance can be defined by two dimensions, the financial need and its term. 

5. The order behind the demand for financial products (especially those that are long term and require the consumption of greater volume of money) is: First the most pressing need is satisfied, after that the most pressing among the remaining, etc… If we want to order – by main points