Life Insurance

Life insurance policy is a financial protection instrument for an individual and his family. As means of protection of the individual, life insurance creates a supplementary income for a specific moment in life through capital insurance or pension. Also, life insurance offers financial support to individuals after they’ve suffered an accident. Additional to protection,life insurance can be considered as a savings opportunity method,being the only 100% inflation-free guaranteed way ,for a long time period,in the Romanian state.

Applicability

As means of financial protection for the family,life insurance brings compensation when the financial protection is lost.

Life insurance represents financial resource and offers coverage for the Insured`s family .At the same time ,life insurance ,thorugh the possibility of being ceased,liquidates financial debts to the bank(loans),thus avoiding the situation in which the family remains in debt.

Insurance coverage

The insurance coverage value is calculated according to factors such as:the Insured`s age,gender,the insured amount`s value,the Insured`s health. Some insurance policies may require previous medical examinations,with costs supported by the insurance company.

Insured risks

Insurance companies which provide life insurance services cover standard risks,respectively the risk of decease.Regarding life insurance,the element of financial protection is decisive,and for a coverage range as wide as possible,insurance companies combine in the offered products the element of protection with the savings and investment element.Therefore,if the insured lives when the contract expires,the insured amount will be granted to him.

The risks covered by life insurance are:

• survival risk –through creating a capital and.or supplementary pension;
• survival risk after an accident,being followed by permanent invalidity –by granting the insured amount for this risk;
• decease risk-by paying the Beneficiary the insured amount;
• risk of losing the ability to work-by exonerating insurance premium payment;
• risk of being hospitalized or suffering surgical intervention-by paying daily compensation for hospitalization and surgery

Characteristic to life insurance are the following defining elements:

• offers protection to your policys beneficiary(according to the policy of your choice)
• they are usually medium or long-term insurances (from 5 to 25 or even up to 80 years)
• require seriosity when paying the insurance premium under the aspect of regularity and insurance period;the payment of the insurance premium can be fully paid or in semestrial,trimestrial and monthly instalments;
• additional clauses can be added to basic products according to the needs of every insured person,extending the risk range and,implicitly,increasing the protection offered by the insurance policy,offering additional advantages to clients in exchange of supplementary fees to the insurance premium.

Risk assessment

Insurance premium is established following risk assessment.This evaluation is done taking into consideration multiple factors:

• age and gender of the Insured
• the Insured`s health
• value of the insured amounts
• length of the insurance contract
• costs related to the insurance contract issuance policy administration and other administrative expenses

In order evaluate the Insured`s health,completing a medical form will be required.After it will be analysed by a team of professionals,the Insurer may demand complex investigations in order to establish as correctly as possible the Insured`s health.The costs of these medical examinations are supported by the insurance company.

Benefits offered by a life insurance policy

In addition to financial protection,life insurance is a sure way of saving in condition of a good capitalisation and inflation protection which assures:

• family members` protection
• financial independence for children during their studies` period;
• guaranteed maintenance of lifestyle,regardless of the situations that the insured are facing in a certain time;
• stability and security of business interests

Supplementary benefits

• Assuring a financial compensation fund in case of invalidity,hospitalization and severe disease diagnosys;
• assuring an immediate exoense fund:funerals,inheritance taxes;
• ensuring children`s future:a fund destined to academic education
• creating a supplementary pension which will provide financial independence in the moment of retirement;

Choosing life insurance in order to create a private pension fund

Choosing a life insurance policy as an addition to create a pension fund ,offers the following supplementary benefits:

• the fund is created even in the event of losing work capacity,therefore ,losing the ability to execute payments
• the coverage of permanent risk following an accident
• assures family protection and of the people who remain insupported

Mixt life insurance policies with capital accumulation

Mixt life insurance with capital accumulation combine financial protection and savings in order to offer a supplementary income when needed.Inflation protection is guaranteed through annual actualisation of insurance premium`s value.

Group insurance

Group insurance is a financial pllaning instrument for a company,which can efficiently ensure staff retention.

Partial or total loss of work capacity has implications both on the insured`s family`s situation,as well as company activity.Special clauses can be added to the life insurance policy,offering extra protection:total and permanent invalidity,invalidity following an accident,payment premium exoneration in case of permanent invalidity,temporary work incapacity,insuring the husband/wife on the home policy.

The insurance policy offers coverage when an unfortunate event occurs and causes work incapacity,invalidity or even death,when providing necessary income is still required for all of those who depend financially on the insured person.