How is life insurance in banks?

 







Life insurance in banks is a social-economic system that works on cooperation, solidarity, solidarity, and interdependence among the participating members by collecting and redistributing risks in a sound scientific system to reduce the burden of loss on the individual who is harmed.

 

Life insurance

It is also an organized means of saving that works to develop the individual's savings, and it is a system similar to an organized savings system, as the individual's way to stop paying installments is linked to the provisions and rules of the organization, which makes these savings less vulnerable to risk, and thus life insurance works to develop and strengthen the elements of safety and provide long-term and continuous protection This is what makes it different from saving in banks or banks.

 

Life insurance information

Life insurances are medium or long-term insurances, and the term of insurance in them ranges between ten years or more than thirty years - and this results in the need for insurance companies to form reserves allocations called mathematical reserves, and these reserves as a whole make up huge funds available for medium or long-term investment.

 

Life insurance for people

It is worth noting that people or life insurances are economically and socially important from an economic point of view, and the insurance sector, such as banks and banks, has huge funds from the savings of policyholders. Actuarial bases, insurance principles, and investment rules. The investment of these funds results in profits for the rights of policyholders, which are disbursed to them over the extension of the insurance period.

 

Types of life insurance

In the following lines, we will mention the types of life insurance:

 

Individual life insurance

In terms of insurance coverage, individual life insurance is divided into two main parts: the first part is temporary insurance and the second is savings insurance.

 

Temporary life insurance

Its purpose is to compensate the insured in case of death during the insurance period by disbursing the amount of the insured insurance. Insurance in this type is between one and 30 years old, or when the insured reaches a certain age, such as 60, 65, or 70 years.

 

Savings insurance

Savings insurances, the most famous of which are life-long and blended insurance. This type of insurance combines insurance and savings, and the difference between life insurance and blended insurance is that blended insurance has a fixed term, let it be 10, 20 years. As for life insurance, it continues throughout the life of the insured, where the sum of insurance is paid in the event of the death of the insured woman. However, if the insured desires It is required to liquidate the policy, so it is possible to disburse a redemption value that is proportional to the period of the insured and the premiums paid.

 

As for mixed insurance, the sum insured is paid at the end of the insurance period, unless the death occurred before the end of the insurance period. The sum insured is due upon death. The premium for this type of insurance is relatively high and varies from one insurance company to another.

 

Takaful insurance

Takaful insurance does not differ from general life insurance except in terms of application and method of managing life insurance funds. As for the insurance aspect, the coverage is the same, which is the payment of an amount in the event of death or at the end of the insurance period. In this type of insurance, it is divided into two basic funds:

 

The First Fund: It is called the Takaful Fund, where the female insured pays an insurance premium known as the Takaful premium. This section is considered (donation) from the insured to the Takaful Fund and is not refundable - and from these Takaful premiums, the death compensation that occurs during the insurance period is paid.

 

The second fund: Is the savings premium, which is invested in Sharia and Islamic aspects of investment and is paid to the insured at the time of his request, with a redemption value or at the end of the insurance period.

 

Group insurances

Group insurances do not differ from individual insurances in terms of insurance coverage. Group insurance contracts in which insurance amounts are paid in cases of death, total or partial permanent disability, or when the female insured reaches a certain age or after a certain period. monthly pension.

 

Group insurance, the most famous of its types, is when the employer, in his facility or factory, concludes a group insurance contract with an insurance or takaful company, in order to provide insurance protection for his work against the risks of death or disability or to disburse the insurance amount as a reward for leaving the service - thus reassuring the worker about the future and the future of his family. The employer is reassured that his workers perform the work in a reassuring manner, in a way that benefits everyone.

 

Group insurance is characterized by a low insurance cost for the insured individual because the employer contributes with the worker to the performance of a large part of the premium.

 

The types of group insurances are the same as the types of individual insurances, namely temporary insurance, and savings insurance, but this is done in different forms commensurate with the nature of each business owner.

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