life insurance

The Concept Of Life Insurance

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The Concept Of Life Insurance

life insurance

Each person’s health and life is the ultimate value. Therefore, from the very beginning the insurance activities assigned them to risks associated with a person’s life, health, and gave them much attention.

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There have been developed and used various types of insurance, which have made people’s lives safer and happier. In the developed countries focus on personal insurance is very high. Almost half of all insurance contributions are assigned for various types of personal insurance. However, together with the growing understanding of insurance importance, the personal insurance services needs are also growing. In the case of life insurance in the first place there is the idea of capital accumulation. Policyholder accumulates capital for any foreseeable future needs.

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The most common practice in capital accumulation is intention to secure current living standards after retirement (retirement insurance) or in the case of an accident (disability insurance). Often, policyholders question the necessity of life insurance.  In fact, you can raise capital in other ways, for example, monthly deposit assets in a savings or time deposit account, investing in shares of various companies or government securities. Capital accumulation based on periodic life insurance contributions is superior to other methods with regard to capital accumulation for a number of reasons.

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