Life insurance creates a reliable resource base for your loved ones and ensures their well-being. Even if all your savings have been used to pay off debt, in case you have life insurance, your family will be provided with financial support after your death.
Life insurance has a long-term character, since contracts are usually concluded for several years, which allows significantly influence the structure of the securities market (reduce volatility, increase the maturity of debt instruments), and also makes life insurers one of the main long-term investors worldwide.
The average share of life insurance premiums in GDP in Europe is 7.4% ranging from 0.9% (Latvia) to 11.4% (Finland). The annual insurance premiums exceed EUR 1.2 trillion in Europe, over 60% of which are in the life insurance segment. The size of investment portfolios of life insurers is approaching 7 trillion euros and makes up a significant part of world GDP. Thus, life insurers are some of the largest institutional investors.
As for the life insurance product line, the global population continues to move from simple risky products to complexly structured investment insurance products, which are sold mainly through banking distribution networks and electronic sales channels.
Unit-Linked, a comprehensive product that includes insurance coverage in the event of death, accident or illness, and an investment component that provides for the investment of client's money in the funds of his choice, has become widespread.
The insurer can play the role of a management company itself or transfer this role to a third-party management company. Unit-Linked is distinguished by transparency and flexibility and a wider range of investment proposals. The client chooses investment options by himself. Part of the investment risk lies with the client, which results in a higher profitability of Unit-Linked.
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