PECULIARITIES OF POPULATION LIFE INSURANCE

Abstract

The economic and social needs of society in many developed countries are being met by a financial instrument such as life insurance. Life insurance is an important element of social protection that solves state social problems and invests financial resources in the development of the state’s economy. It helps to get financial protection for the insured person in case of unexpected events, to secure the elderly people, to get education for the accumulated funds or to start own business, etc. Life insurance companies involved on insurance markets invest in the economy thereby supporting and developing the state’s economy. Today, life insurance is the most promising development for all types of insurance worldwide. The purpose of the article is to reveal the essence of the concept of life insurance, its features and components, as well as to determine the place of life insurance in the system of social protection of the population. To achieve this goal, the author used such methods and techniques as analysis and synthesis, establishing causal relationships of the processes and phenomena development, tabular and graphical methods. The author substantiates the importance of life insurance and determines its place in the system of social protection of the population. The main features of life insurance and its components have been identified and characterized. Existing scientific and legislative definitions of the “life insurance” concept have been analyzed. It is concluded that life insurance as an important element of social protection of the population has its peculiarities in comparison with other types of insurance, and therefore: not only minimizes insurance risks, but also savings and multiplication of funds; an insurance event may be an event without signs of harm to the insured person; an insurance event must be required; in any case, the insurer will make the payment to the insured person in the event of surviving to the stipulated age or at the end of the contract, or to a third party in the event of the death of the insured person.