In the insurance market there are both life insurance and non-life insurance. In the former, the insurance company undertakes to compensate the beneficiary an established amount in the event of death or according to certain circumstances regarding the survival of the person they have contracted. Currently, there are four types of life insurance.
Within the type of death life insurance there are several options. First of all, we have the whole life death insurance. In this case, the insurance company pays the insured amount at the time of death, regardless of when the person dies.
Temporary death insurance has slightly different conditions. The insurer will pay the insured amount if the insured dies within “h” years from the time of contracting the insured. Normally, the years are specify in the policy when it is purchase.
Third, there is defer death insurance. In this type of life insurance, the company will pay the insure. If he dies “h” years after taking out the policy. Once this moment is reach, it is already valid until this event occurs.
Finally, there is defer and temporary death insurance. This is practically the same as the previous one. But the capital will only be pay if the policyholder dies within the establish period.
Within this modality, there are income insurance. These work in the following way: the insurance company is obliged to pay periodically, as established in the policy, a certain amount if the insured lives during the period established for payments. They can be life annuity insurance, in which the insured receives payments until his death or temporary income. In the latter case, payments are received according to a previously established period of time.
Within this same typology there are also defer capital insurance. In this case, the insurance company obliges the insured to return the insured capital if the policyholder is still alive after the agreed time. Otherwise, if the policyholder has died before, no amount must be paid.
Mixed life insurance
It is a combination of survival insurance and death insurance. In this case, the insure is entitle to receive a benefit both in the event of continuing to live and in the event of death. Within this modality there are two types that are the most common:
Simple mixed insurance: The insurance company establishes the payment of an established amount to the beneficiaries in the event of the policyholder’s death if the death occurs prior to the established period. In the event that the person is still alive after this time has elapsed. It will be the person who will receive the capital established in the insurance.
Mixed life annuity insurance with counterinsurance: To the simple mixed insurance is added the clause of the return of the premiums already paid by the insurer if one or more specific conditions occur.
Unit-linked products or diversified insurance funds
This is the combination of financial products, normally investment funds, with life-risk insurance with death coverage. This type of product serves to take full advantage of the benefits that the stock markets can offer.
These types of products are in high demand because they offer several advantages that other life insurance does not. Normally, they are flexible and can be redeemed at any time the insured wants. Without having to pay commissions or penalties. The beneficiaries of the insurance at the time of the death of the insured usually obtain a much higher capital. Finally, the financial-fiscal return is high, especially if the investment term is long.
Prepare yourself as a professional in the insurance sector
It is undeniable that the insurance sector is of great importance at a global level and will continue to do so in the future. For this reason, studying a specialized master’s degree in insurance is a great advantage and investment for the future. In addition, students leave the course with the skills that insurance companies need today. EALDE Business School has designed a training program taught entirely online, with the aim of preparing experts in this field.
The Master in Insurance and Risk Management transmits the necessary knowledge to students to be able to dominate the insurance market, together with Risk Management. Students will learn different regulations, such as Solvency II, and international standards, such as ISO 31010.