Insurance

THE MINISTRY OF EDUCATION AND SCIENCE OF THE REPUBLIC OF KAZAKHSTAN

INTERNATIONAL ACADEMY OF BUSINESS

DEPARTMENT OF “FINANCE AND AUDIT”

Essay

On discipline “Insurance”

Topic:

Life insurance as an element of financial planning system

Done by: Shaimukhambetova A.

Student IAB group F0802

Checked by: Chivazova A. Z.

Senior Lecturer of IAB

Grade: _______

ALMATY 2011

Life insurance is protecting an individual and his or her family from the financial point of view. As means of protection of the individual, life insurance creates a supplementary income for a certain moment in life through assuring a capital or a sort of retreat benefit.

Life insurance is the financial resource of an individual’s family during the happiest moments of his or her life but during unhappy moments as well, like decease or invalidity. Moreover, life insurance comes to support an individual when he or she, after an accident, needs financial support.

As means of protection for the family, life insurance brings a compensating income under the conditions of losing that person who was responsible with bringing money to the house, maintaining normal living conditions to his or her beloved persons in the family.

Besides, life insurance, through its possibility of being transferred, liquidates financial debts like bank credits, avoiding family ulterior debts. Apart from protection, life insurance is a way of saving money for a long time, with protection against inflation.

Life insurance is beneficial for any person who thinks that at the age of retreat can get more money than a usual retreat benefit. Or you may save or use money received as insurance premium, which is a serious sum at the end of the period covered. Or, in the case of an accident or decease for any reason, you need life insurance in order not to leave your children in a difficult financial situation. Or you may think of your husband...