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Life Insurance :<3: (Key risks (Mortality, longetivity, morbidity,…
Life Insurance :<3:
Key features
Long term
One claim
Known claim amount
Protection/Saving
Individual/groups
Underwriting
Provision
Reasons why reserving more prudent
Legislation
Some insurers get "good risk"
Cross subsidies
New Business strain
Underwriting
Admin
Setting up reserves
Commission
Investment strategy
Constraints
Regulation
Free assets
Tax efficiency
Profit margin
Key risks
Mortality, longetivity, morbidity
Investment
Expenses not met
Early withdrawals
New business strain/Lack of sales
Credit risk
Operational risk
Risk products
Whole life assurance
Surrender:check:
Needs :silhouettes:
Cover death costs :funeral_urn:
Long-term protection to dependent
Guarantees/options
Group :red_cross:
WP, WoP, UL :moneybag:
Term Assurance
Needs :silhouettes::
Protection from financial loss
Income for term
Capital portion of loan/Pay for dependents (till self-sufficient)
Key-person Insurance
Surrender benefit:red_cross:
Group :check:
NP
Income protection
Needs :silhouettes:
Sickness/incapacitation
Unemployment/handicap child
Group :check:
NP
Critical Illness
Needs :silhouettes:
Cash lump-sum on diagnosis
Nursing/Long-term care
Group :check:
NP, UL
Long-term care
Needs :silhouettes:
Home/nursing facility
Group :check:
Savings products
Pure endowment/ Endowment Assurance
Surrender :check:
Needs
Transfer wealth
Repaying capital portion (loan)
Vehicle for saving for retirement
Group :check:
Unit-linked (older WP) :money_with_wings:
Retirement annuities
.
Life annuities
Needs :silhouettes:
Retirement
School fees
Lumpsum (retirement) to pay for expenses
Group :check:
WP, IL
Living annuity (Income drawdown)
Needs :silhouettes:
Transferring wealth
Risks
Income volatile
Captial portion :arrow_right:0
Charges high
Fund may be too low
Tax charges (on death)
Group :red_cross:
Investment types
WP
Smooth
Expectations
Competitors
Legislation
WoP
UL
IL