• Thu. Jun 8th, 2023

What does life insurance look like in banks?


Sep 25, 2021

Life insurance in banks is a socio-economic system that works on cooperation, solidarity, solidarity and interdependence of the participating members by collecting and redistributing risks in a sound scientific system to reduce the burden of the person being disadvantaged .

Life insurance

It is also an organized savings tool that develops the savings of the individual, and it is a system similar to an organized savings system, since the way in which the individual to stop paying installments is linked to the terms and rules of the organization, which is these savings that are less susceptible to risk, and life insurance is therefore working to develop and strengthen the elements of safety and provide long-term and ongoing protection. This is what makes it different than saving in banks or banks.

Life insurance information

Life insurance is medium or long-term insurance, and the term of insurance varies between ten years or more than thirty years – and this causes insurance companies to form reserve allocations called mathematical reserves, and these reserves as a whole make large funds available for medium or long-term investment.

Life insurance for people

It is noteworthy that people or life insurance are economically and socially important from an economic point of view, and that the insurance sector, such as banks and banks, has large funds from the savings of policyholders. Actuarial bases, insurance principles and investment rules. The investment of these funds leads to gains for the rights of policyholders, which are paid out to them over the extension of the insurance period.

Types of life insurance

In the following lines we 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 paying out 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 insurance, the best known of which is lifelong and mixed insurance. This type of insurance combines insurance and savings, and the difference between life insurance and mixed insurance is that mixed insurance has a fixed term, let it be 10, 20 years. As far as life insurance is concerned, it applies during the life of the insured, where the sum of the insurance is paid in case of death of the insured woman. However, if the insured desires It is necessary to liquidate the policy, it is therefore possible to pay out a redemption value that is proportional to the period of the insured and the premiums paid.

In the case of 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 insured amount is payable on 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 applicable and method of managing life insurance funds. As far as the insurance aspect is concerned, the cover is the same: the payment of an amount in case 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: This is called the Takaful fund, where the female insured pays an insurance premium, known as the Takaful premium. This section is considered as a (donation) of the insured to the Takaful fund and is non-refundable – and from these Takaful premiums the death benefit 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 insurance

Group insurance does not differ from individual insurance 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 insured woman reaches a certain age or after a certain period. monthly pension.

Group insurance, the best known of its kind, is when the employer concludes a group insurance contract in his facility or factory with an insurance or takaful company to insure his work against the risks of death or disability or to pay out the insurance amount if a reward for leaving the service – thus reassuring the worker about the future and the future of his family. The employer is assured that its workers perform the work in a reassuring way, in a way that benefits everyone.

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

The types of group insurance are the same as the types of individual insurance, namely temporary insurance, and savings insurance, but these are done in different forms that correspond to the nature of each business owner.

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