Life
and health insurance - a typical legal institution, time, agency or
entity the contents of which are very clearly written, rich in
actuarial, economic and financial activities. However,
recently some people try to use it for operations, it is very similar
to the monetary irregular deposit with partial redundancy. These
attempts are very destructive and solvency of the traditional life and
health insurance, as an institution and misled by those who consider
themselves "insured depositors."First of all, it is important to understand that the life insurance contract is not related to the monetary irregular deposit contract. Life Insurance - a contract rate at which one party, the insured (the policyholder) undertakes to pay a fee (premium), or the price of the operation, and in exchange for the other side, that is, the insurer (insurance company) agrees to pay a certain compensation in the event of the death of the insured or still alive at the end of the period specified in the contract. Thus, the fees paid to the holder of the policy is not fully available to him, but access to them is completely transferred to the insurer. Thus, all life insurance contracts contain the exchange of these defined benefit plans for the future, uncertain benefits (to payment under the contract depends on uncertain events, such as death or survival of the insured). For this reason, a contract of life insurance, savings equivalent to an act (in which the ownership of the real benefits and access to common property and the availability of future benefits) as the best savings. Such a contract creates an opportunity to get a significant amount when it enters into force, provided that the expected happens, uncertain event (eg death of the insured). In order to accumulate capital that the insurance company pays the death of any other traditional method of preservation (traditional surgery or credit) will require a long, measured over the years, a period of [continuous] savings. In other words, life insurance contracts on the basis of calculating the probability of mortality tables and survival, as well as on the principle of reciprocity, that is, the separation of losses among all insurance companies - clients of insurance companies have done very first time [after the conclusion of the contract], if the anticipated event, a significant amount of money the accumulation of other methods that will take many years to come.
In addition, life and health insurance is a long term contract in a difficult financial and insurance components, and requires a reasonable investment of significant resources. The availability of these resources goes to the insurer, who must collect [from insurers] are calculated mathematically and investment reserves needed for future payments on liabilities. These values are called "mathematics" as they are obtained by calculating the probability of death and survival according to mortality tables, which are extremely reliable and have high resistance to the majority of Western countries. You can calculate the amount needed to pay for all of the guaranteed compensation, so that the probability of ruin was the lowest. Later, we consider the basic economic and financial differences between the contract of life insurance and baggage irregular fractional-reserve. In contrast to the life insurance contract does not allow the calculation of the probabilities of non-regular luggage, since the existence of the organization (bank based on a fractional reserve) and periodic mass withdrawal of deposits are not completely independent phenomena.
An additional complication is that some types of life insurance include the right of refusal. This means that insurers can cancel the contract and get cash mathematical resale value of their policies. Some theorists promote a position which is that the insurance policies, including the "purchase price" is very similar to the monetary irregular deposit contract with a partial redundancy. In contrast to this view, it is important to note that the presence (or absence) hidden in the luggage of an irregular ultimately depends on the true motives, goals (subjective reason) of the contract. If, as is typical for traditional life insurance, the client intends to maintain the policy until the expiration of his term and did not know that he may at any time to withdraw funds, the transaction is not obvious irregular baggage, and traditional life insurance contract. This type of insurance is sold bundled with the idea that a failure - a "last resort", that is a decision that is appropriate only in extreme necessity, when the family is unable to continue in full payment in accordance with the policy, which is essential for peace of mind all its members.
Nevertheless, we must recognize that (particularly) in recent years, banks and other financial institutions have made constant efforts to erase the basic, traditional distinctions and blurring the boundaries between life insurance contracts and bank deposits.
The market began to emerge of the true cash deposits under the guise of life insurance policies. The main tactic of sales is as follows. Clients report that they should not impose the burden of long-term savings, including scheduled payments, as the funds transferred to the insurance company can return at any time without penalty or cost (and sometimes with interest). One of the reasons why companies disguise these actions within the life insurance to take advantage of the traditional tax breaks that almost all governments in developed countries, provides insurance companies with regard to their beneficial impact on society at all levels, as they stimulate the activities of voluntary savings and prudence, and, therefore, a stable, noninflationary economic growth and development. Thus, large quantities of bogus transactions made "life insurance" is actually nothing more than disguised contributions, which makes the viewer with ease, given that this money if they need or simply have a desire to put them in a different financial institution can get back without penalty. All this gives rise to much confusion. For example, the numbers that correspond to operations not related to life insurance (bank deposits) were included in the official statistics collected premiums on life insurance, and amid much confusion, the traditional life insurance market had been discredited, and their definitions are fuzzy.
Fortunately, the restoration of a normal situation. And traditional private insurance companies and the authorities are beginning to realize that nothing causes more harm than life insurance blurring the line between him and bank deposits. This confusion is harmful for everyone, traditional life insurance, which has lost a lot of tax benefits, and are faced with increased interference and control by the central bank and state, and to customers who purchased life insurance, thinking that to make a bank deposit, and vice versa, and banks, which in many cases, the funds raised from the true contribution (under the guise of life insurance), and tried to put them in the long-term projects, thereby jeopardizing their ability to pay, and, finally, government oversight, gradually lost control of the institution of life insurance ( due to the gradual erosion of its definition), which was largely intercepted by another agency - the central bank. And the banks - it is an entirely separate type of institution, financial and legal frameworks, as we see, leaves much to be desired.
taken from http://vkurse.org
