On the other hand, consumer awareness to life insurance difference has increased recently and this fact-enhanced product competitions. In addition to that, in United States? insurers have adopted several innovative approaches to be able to offer potentially lower cost insurance.

In the other countries, many improvements have been made since last decade and innovations are in continuation. By considering the social changes, policy owners began to examine and proposed the quality of existing or proposed policies. Also, sometimes found these policies deficient in light of the new economic realities. Their heightened expectations led them quite naturally to demand better value.

Besides by being a developing country with a great, inflation problems and an untnalanced income distribution? people needed to have lower cost insurances as the ones offered in United States. But in one sense, the old notion that “there is not and can not be anything new in life insurance” is correct. Ingredients or basics of life insurance do not change. in another very real sense, however much is new.

Moreover, many Consumers; have demanded life insurance whose rates of return are in line with contemporary investment return and that permits a rapid change in this rate of return to reflect marketplace realities. Some have stated a preference for flexible premium payment schedules and the ability to alter other policy element easily.

Furthermore in other countries policy owners, insurance companies and insurance agents should convince people that this sort, of policies are very much reliable and beneficial for their near future. Apart from this satisfaction, some potential changes are urgently needed or should be quickened on the offered personal life policies. For instance, some joint advantages should be added in order to reach the level of some industrialized countries such as United States whose economic and social problems are much less than other countries.

Cheap life insurance, annuity insurance.

Lower Cost Insurances is a post from: Buy Sell Annuity

THE QUESTIONNAIRE (Life Insurance Questions)

Age:

Sex:

Education level:

City or town of schooling:

Place of present residence:

1) How much is your income (monthly)?

a)Less than 3 thousand

b)Wore than 3 thousand

2) What is your marital status?

a)Unmarried

b)Married, no children

c)Married, one children

d)Married, »ore than one children

3) Do you have life insurance?

a) Yes

b) No

4) If you have life insurance, which of the following factors have been influential in your decision?

a)For financial security in old age

b)To most the expenses of medical care in case of an accident or sickness

c)To guarantee my children’s future

d)Other reasons

5) If you do not- have life insurance, why?

a)Because I can not afford

b)Because I do not have enough information about it c>I know, but I do not think it is necessary

d)It is not worth it (because of high inflation cause)

6) If you have life insurance, did advertisements and commercials in mass media (TV, newspapers, etc.) affect your decision?

a) Yes

b) No

7) Do you have other types of insurance?

a) Traffic

b) Theft

c) I have apart from the ones mentioned above

d) None

8) What is life insurance in your opinion?

Thank you

This questionnaire has been distributed to 50 informants who presently live in city. All were given questionnaires and they were interviewed, following the lines of the questionnaire. They are from different age groups, financial situation and education level. The results of the questions can be seen as follows:

INSURED – NOT INSURED

1- Monthly income,

over 3 thousand                                                        36%             64%

Monthly income,

below 3 thousand                                                25%           75%

2) Martial Status

a) Single                                                                  28%             72%

b) Married                                                              27%                  73%

3) Education level

a)University degree                                             29%             71%

b)Without a degree                                              25%           75%

4) Causes of buying a policy

a)An assurance for old age                                53%           47%

b)For confrontation of the hospital expenses    15%         85%

c) For assurance of their children

d)Other reasons                                                          30%            70%

5)Causes of not being insured

a) Less income –                                                         18%

b) Not enough knowledge –                                   18%

c) Not find it necessary –                                        24%

d) Not- valuable because of

hi sh inflation rates – 40%

6)Influences of the advertisements,

a)Yes                                                                              23%

b)No                                                                               77%

7)Any insurance types people insured, apart from life

a)Traffic                                                                        15%                    85%

b)Theft                                                                           30%                     70%

c)Others                                                                        23%                        77%

d)None                                                                          46%                    54%

(life only)

In accordance with these results, it is obvious that, monthly income is the most prominent factor in buying a life insurance policy and the people who own a life insurance seen to be much more open to purchase other insurance policies. This is evident through our figures which is about 54% of this people have owned other types of policies. This fact is also shows their adoption and consciousness to this necessary duty.

In addition to that, age and even education level are not seemed to be very important factors for not being insured. But, due to our questionnaire a considerable view is come to stage between our male and female informants. According to that, our twenty-three female informants (30%) are slightly more interested in life insurance than our 27 male informants (25%). As it is understood from this difference between male arid female, one can imagine that this is most probably because of the economic insecurity. Also from the responses given to the question eight, in the questionnaire? it is seen that 60% of the informants believe that life insurance is very much needed for certainty and an extra financial support in future years.

Life Insurance Questionnaire (Survey) is a post from: Buy Sell Annuity

Although a premium payment- is not generally -retired each year, companies usually do establish a minimum acceptable payment level (e.g., #. 25 to #.30) if a payment is to be made.

2) Single-Premium Deferred Annuity: This annuity is a model of simplicity. Its name is descriptive: It is a deferred annuity contract- that is purchased with a single premium. As with the Flexible-Premium Deferred Annuity, a. minimum stated rate of interest is guaranteed by contract to be paid throughout the duration of the contract, but most insurers are said to be paid competitive market rates. This annuity can be an important element in a retirement program. As with all insurance contracts, it is important that the contract suit the needs of the client and that the insurer offering the product is reliable.

3) Joint and Last-Survivor Annuity: This annuity is finding increasing acceptance, primarily as an alternative income settlement form under individual life insurance and annuity contracts, and in private pension plans. It can be appealing since it provides that income payments continue for as long as either of two or more persons lives. Its most obvious use is for a. husband and wife or other family relationships. This form is usually offered on either a pure life basis or with a certain number of installments guaranteed. In its usual sense, the joint and last survivor annuity continues the same income until the death of the last survivor.

4) The Variable Annuity: This contract provides benefits that vary directly with the investment experience of the assets that back the contract. Assets backing variable annuities, like those backing variable life policies, are maintained in a separate account and the investment results of this account are reflected directly in the variable annuity values.

Besides, these annuities should offer, over the long run, protection against the debilitating effects of inflation on fixed incomes, such as that which would be provided by fixed annuities. It is hoped that, the long-run returns on common stocks and other investments will keep pace with inflation.

Annuities can be broadly useful in both the tax-qualified and non-qualified markets. The annuitant has the benefit of the high-quality investment management offered by insurers. This can be especially important for older persons who may desire to be released of investment cares and management.

Annuitants (at retirement age) would enjoy monthly incomes equal to or significantly higher than those obtainable through the customary ways of conservative investment if they are willing to have the principal liquidated. Each year, the company would pay to the annuitant the current income on his or her investment plus a portion of the investment itself. If the buyer examined care in the purchase decision, the net return on his or her annuity should prove competitive with other investments of comparable savings media.

The large income is certain, and the annuitant may spend it without fear. It will least as long as life ends. In the absence of an annuity, there is always the danger of spending too much or too little. But with the annuity, the scale of spending is not only increased but is definite in amount.

There are different annuity contracts. Four categories of annuities discussed below

1)Flexible-premium deferred annuity

2)Single-premium deferred annuity

3) Joint- and last-survivor annuity

4)Various annuity

Type of Annuity Contracts is a post from: Buy Sell Annuity

In some countries, it is possible to examine life insurances under the basic titles

I) Personal Life Insurances

II) Group Life Insurances

Personal life insurance are divided in itself as:

a) Life insurances due to die

b) Life insurances due to survive

c) Mixed life insurances

For the first division, if the insured dies the determined sum or the annual incomes should be payed to the beneficiaries (these people are either legal beneficiaries or the ones shown on the policy).

For the second division, if the insured stayed alive by the end of the policy date, an adjusted total (sum) or an annual income should be paid with the agreement period.

For third division, if the insured dies with the agreement period; the beneficiaries can receive a. considerable capital or an annual income. If he stays alive these amounts are given to himself.

Moreover, a great importance is given to Group Insurances as much as Personal Life Insurances. If the employees work in a static profession, this insurance type is done by either the employer or the syndicates. For other people work in various, occupations, societies are done this favour for the benefit of the employers. Imaginatively, this way of saving up accelerates the growth of the Group Life Insurances. Though it is considered as a new subject among the life insurances, it makes a positive effect in decreasing the losses especially in hard moments.

In Group Life Insurances, the approximate payment per person? for almost every country is less than the payment in personal life insurances. Because, as it is mentioned the total sum of the payments or a small amount of it, is being paid by the employer.

Payments:

a) Due to death: By the end of the policy agreement, payments should be paid to the insured or due to death to the person or persons named on the policy. Insured should be named of the beneficiaries beforehand. If this is not so, they are chosen through the court.

Fundamentally education, population increase, salary inequalities, low salaries and inflation. Within this perspective insurance business in general does not play a great role in people’s lives. In the life insurance branch, although people are becoming conscious they are still hesitating in buying the life policies.

In paying the insurance capital to the beneficiaries t-he following items should be shown:

- A photocopy of the identification card of the insured,

- Policy and a receipt for the last payment,

- A death certificate given by the Registry of the Birth,

-A death report that defines the causes of death

-Burial permission,

-An inheritance certificate

-In a case of an accidental death an investigation report that defines the causes of death.

Should be prepared and forwarded to the insurance company. After the completion of the necessary examinations, the payment should be paid within a very short time.

b)Reductions in an insurance policy: Insurance

payments are calculated with an assumption that these should be paid within the agreement period. If the insured, ceases from paying the premiums, insurance companies cannot force the insured to do his duty.

However, if the insured gives up this insurance without waiting three years and without paying the premiums on time? and if he did not use his rights such as borrowing or abandonment; insurance is said to be reduced.

When the insurance is reduced, agreement will be continued. However, when the mathematical equivalence occur during the insured’s hard time in paying the premiums? insurance company can not do any payment without any arising risk or before the end of the agreement. This period is now reduced to one year in group life insurances.

In order to make a reduced policy effective again with the delayed interest rates, the delayed payments should be payed within one payment. If the insured ceases from the insurance agreement without any notification for the first year, his policy is cancelled and no refund is given to the insured.

c)Purchase, act of buyings If the insured ceases from the due payments after paying the first three years payment liabilities? he/she may apply to the insurance company in order to sell the insurance policy. In such a case, insurance company gets back the insurance periods the purchasing and the credit obtaining amounts are as follows:

The difference between the reductions and purchasing can be appeared when the total of the insurance policy have been paid to the insured. In reductions, in order to do any payment insurance company should wait an any probable risk that may occur. But for purchasing, the purchasing money is paid at once and the contract between the insured and the insurance company is ended.

In other countries, people who purchase life insurance policies are mostly from the middle-class or lower incomed group of the society. By seeing this fact, they have inevitably some problems in paying the premiums on time; and this heightens the purchasing rate. According to the investigations done recently, it is seen that, the abandoned polices are about the 70%, of all policies. Normally, only 30% of the insureds can continue to the insurance agreement.

Actually, for avoiding and the way to choose purchasing, a law has been put forward which brings a facility in giving loans, in return of the insurance policies. In order to ask for a loan from the insurance company, the insured should be paid the premiums of 3 years. In general, insurance companies can able to give loans which are about the 95% of the purchasing value. The loan amount is determined by the insurance company.

Life Insurance in Other Countries is a post from: Buy Sell Annuity

Annuities may be classified in a number of ways. Here they will be classified as 1)number of lives 2)method of premium payment- 3) time when income starts 4) method of disposing of proceeds and 5) units in which benefits are expressed.

1)Number of lives: This involves simply the question of whether annuity payments are made with reference to a single life or more than one life. If the contract covers two or more lives, it- is known generally as joint-life annuity.

2)Method of premium payment: Annuities may be purchased with single premiums, fixed periodic premiums, or flexible periodic premiums.

Therefore, a single-life annuity could be purchased through accumulated savings, inheritance, or other media, or an individual may choose to spread the payment over a specified period by paying periodic premiums.

3)Time when income payments starts Annuities may also be classified as to whether the beginning point of income payments is deferred or immediate. An immediate annuity is one under which the first benefit payment is due one payment interval (monthly, annually, or other) from the date of purchase. The deferred annuity, on the other hand, may be purchased with either a single premium or a fixed or flexible periodic premium. Under a deferred life annuity, there must be periodic longer than one benefit payment-interval before the benefit payments begin. The longer the deferred period, the more flexibility may be permitted in premium payments. Normally, a number of years elapses before benefit payments commence. The majority of individual deferred annuity contracts are sold on a flexible premium basis.
4)Disposition of proceeds: Under this classification, distribution of the annuity proceeds are considered, including whether there is a refund feature and the duration of the benefit payout period.

5)Units and currencies in which benefits are expressed: Annuity benefits have been expressed in fixed dollars. With the advent- of the variable annuity, the units in which payout benefits are expressed forms another basis of classification.

Our next will be about definition of annuity types…

There are actually a limited number of different annuity contracts. Four categories of annuities discussed
below
1)Flexible-premium deferred annuity

2)Single-premium deferred annuity

3) Joint- and last-survivor annuity

4)Various annuity

retirement benefits, annuity life insurance, annuity policy…

The Nature of Annuities is a post from: Buy Sell Annuity

If you live past the term set in the contract, you can use it as retirement income. In retirement income policy, the amount payable upon survival is greater than the face amount, and the amount payable at death is the face amount or cash value whichever is greater, A semi-endowment policy pays upon survival only one-half the sum payable in the event of death during the endowment period. The ‘deposit term policy provides a small endowment amount as a maturity value. Apart- form the forms mentioned, there are also some other kinds of juvenile endowment policies. These include endowments maturing at specified ages for educational purposes.

Since the company’s liability under an endowment policy involves not only payment of its face upon death but also payment of the full amount of the policy upon survival of the term, it follows that the annual premium on such policies is much higher than that for whole life or term policies, except for the very long endowment periods, where the rate is only slightly higher than that-charged on an ordinary life policy.

Endowment insurance was once considered as an effective vehicle for accumulating savings. However tax law changes effectively limited the endowment insurance market to various qualified retirement plans and endowment insurance was having great difficulty in competition against whole life and term insurance. Therefore, existing endowment policies could provide reasonable customer value,especially for those in poor health. Finally you should know: In endowment insurance, the premium-paying period is shorter than whole life insurance. Also Endowment life insurance comprise of a limited premium-payment period…
Types of Endowment life insurance policies: Low cost endowment policies, Unit-lined insurance, Traditional with-profit endowments…
You can have the best of both worlds with this savings plan.

Endowment life insurance request more expensive annual premiums than term or whole life insurance..

Next post: The nature of Annuity

The Nature of Endowment Insurance 2 is a post from: Buy Sell Annuity

a) Mathematical Concept: Through the company, under Endowment Insurance two promises are made 1) to pay the face amount if the insured dies during the endowment period, and 2) to pay the face amount if the insured survives to the end of endowment period. The first promise is identical with that made under a level term policy for an equivalent amount and period. The second one introduces the pure endowment. A pure endowment promises to pay the face amount only if the insured is living at the end of a specified period, nothing being paid in case of prior death. This insurance is not sold by itself because it is said that few people are willing to risk the obvious loss of all premiums paid in the event of death before the end of the endowment period. Therefore, in order to provide a death benefit during the endowment period, only term insurance for the same period need be added to the pure endowment.

b) Economic concept: This concept divides the endowment insurance into two parts, decreasing term insurance and increasing investment. The investment part of the contract is viewed as a savings accumulation that is available to the insured through surrender or loan against the policy. This increasing investment is added by decreasing term insurance when added to the investment accumulation will equal  the face amount payment the policy.

Read for more information: The Nature of Endowment Insurance 2

The Nature of Endowment Insurance is a post from: Buy Sell Annuity

1) Joint Life Insurance: Joint term life insurance is an inexpensive and simple form of a protection (insurance) policy. It promises to pay the face amount of the policy on the death of one or two or more insureds, covered by the contract. The policy is often used to insure both the husband and wife, with each being the beneficiary of the other. The policy pays only the death of the first and then it terminates. Joint Life Insurance pays out the predetermined lump sum in the policy if the policyholder dies.

The survivor is without life insurance coverage under this policy. However, the survivor has the right to purchase a whole life policy an his or her life without providing evidence of insurability. Some contracts  continue insurance temporarily and most provide that if both insureds die in a common disaster, the insurer will pay the face amount on each death.

2) Survivorship Life Insurance: Survivorship life insurance is a type of permanent life insurance protection in which two lives are insured under one insurance policy. Survivorship life insurance also known as “second to die” life insurance.

This type insurance is referred to as second-to die and last to die insurance. It insures 2 or more lives and pays the death proceeds upon the death of the second or last insured to die. The survivor-ship policy is priced based on the probability of having to pay benefits at the death of someone other than the first to die. This is in contrast other than the firs to die. This is in contrast to joint life. Premiums normally after the first death, but some products provide that premiums cease at the first death, or offer this feature as a rider.

Survivorship life ensures loved ones are provided for. Survivorship life is designed to pay or help pay for estate taxes.  Survivorship life helps ensure valuable family assets remain in your family’s control. Whole life insurance and Endowment life insurance  are two different types of permanent life insurance. We will explore these insurance types differences in next post.

Types of Whole-Life Insurance Policies: Indeterminate premium, Interest sensitive policies, in non-participating insurance, Limited pay insurance, Economic insurance, Single premium policy, in participating insurance…

Keywords: “Survivorship Life Insurance” + “Joint Life Insurance” + “Life insurance policyholders” Our next article will be about The Nature of Annuitis and The Nature of Endowment Life Insurance.

Types of Whole-Life Insurance Policies is a post from: Buy Sell Annuity

It could be imagined that under all modified life policies, the values are smaller in the earlier years than normal and are not payable at as early a date, but in all other respects the contract seems identical with the ordinary life policy.

2) Economatic Whole-life Insurance: The purpose of this type is basically to provide a whole-life participating policy with a low premium. Under these policies dividends are said to be earmarked. Under one way, the amount of a special ordinary life policy is reduced after a few years. But, dividens are used to purchase deferred paid-up whole-life addition. for instance, if any reduction is done at the face of the policy, the paid-up additions should fill the gap and the total death benefit should be at least equal to the original face amount.

Under another way, the actual policy face amount 60 or 80 percent of the death benefit, but with the different made up by the purchase of of paid-up additions and term insurance the total death benefit is intended to remain equivalent to or greater than the initial policy death benefit. In most of the companies in United States if dividends paid exceeded those needed to purchase the requisite amount of additional coverage, the excess would be used to purchase paid-up additions. If dividends are lower than illustrated one-year term be purchased.

3) Indexed Whole Life Insurance Insurance: Several companies in United States offer a whole-life policy whole face amount increases in price indices. Generally, it could be said that these policies have been classified as to whether the policy owner or the company assumes the inflation risk. Under one way, where the policy-owner assumes the risk, the death benefit increases each year in accordance with the price indices and the insurance company bills the policy-owner each year for the new, higher amount of insurance. If the policy-owner declines one 1 to purchase the increase no further automatic increases are allowed.

Under another way, which the insurer assumes the inflation risk is similar in effect to the preceding approach. Increases in face amount do not alter the premium level paid.

4) Graded Premium Whole Life Insurance: These policies provide that premiums begin at a 50% or lower level of these for a comparable ordinary life policy. Premiums increase annually for a period of form 5 to 20 years and remain level thereafter. cash values develop much more slowly than with ordinary life, often not appearing for 5 or more years. Policies may be participating or nonparticipating or may have indeterminate premiums.

5) Single-Premium Whole-Life Insurance: These policies have been available for decades. Here the purchaser pays a single premium to the insurer that credits current rates of interest to the fund value. Rather than mortality and expense charges being deducted annually from the cash value, they are netted against the interest credited to the fund. Therefore, it appears to be no specific deduction for those charges in the fund accumulation.

Annuity and Whole life insurance informations.

Modified Life Insurance Policies is a post from: Buy Sell Annuity

If we look through the limited payment policies under the whole-life insurance policies, one can realize that; the value written on the face of the policy is not payable until death. But, the premiums charged for a limited number of years only after which the policy becomes paid up for its full amount. Here, the payments cease after ten, fifteen, or twenty years but life policies providing for twenty-five or thirty years premiums are not uncommon. The greater the number of premium payments the more closely the contract approaches the ordinary life form. For example, if premiums are limited life policy. Also some companies in United States make available contracts which limit premiums on the basis of a terminal age such as 60, 65, 70 or even higher.

On the other hand, the one-pay or single-premium whole-life policy is an extreme form of limited payment life insurance. It is understood that under this form the savings element is the predominating feature and the protection element is substantially less than the value written on the face of the policy. Finally, it could be said that such contracts are purchased primarily for investment reasons. The other extreme is represented by the ordinary life insurance policy where premiums are payable until the matuirty of the contract. The normal limited payment contracts vary between these extremes.

AS the number of premium payments increase, the annual premium and consequently; the cash value or savings element becomes correspondingly smaller. When a company in United States sells a whole-life policy at the age of 35, which is going to be paid according to one of these premium plans, their requires that the proper reverse values be maintained. Such values represent the excess of premium payments over the cost of protection and could be taken into account as representing savings belonging to the insured. Read about this subject on the next post.
The Nature of Whole-Life Insurance
Annuity and Insurance Blog.

The Nature of Whole-Life Insurance 2 is a post from: Buy Sell Annuity