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Questions and Answers
كيف يتغير احتمال الوفاة بالنسبة لعمر المؤمن عليه في وثائق تأمين الوفاة؟
كيف يتغير احتمال الوفاة بالنسبة لعمر المؤمن عليه في وثائق تأمين الوفاة؟
ما هي العلاقة بين قسط التأمين وعمر المؤمن عليه عند شراء التأمين؟
ما هي العلاقة بين قسط التأمين وعمر المؤمن عليه عند شراء التأمين؟
ما الذي تضمنه وثائق تأمين الوفاة لورثة المؤمن عليه؟
ما الذي تضمنه وثائق تأمين الوفاة لورثة المؤمن عليه؟
ما هو التأثير المحتمل للزيادة في عمر المؤمن عليه عند شراء تأمين الوفاة؟
ما هو التأثير المحتمل للزيادة في عمر المؤمن عليه عند شراء تأمين الوفاة؟
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ما هي العناصر التي يتكون منها القسط التجاري؟
ما هي العناصر التي يتكون منها القسط التجاري؟
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من هم المستفيدون في وثائق تأمين الوفاة؟
من هم المستفيدون في وثائق تأمين الوفاة؟
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أي من المصروفات التالية تعتبر جزءاً من المصروفات الإدارية؟
أي من المصروفات التالية تعتبر جزءاً من المصروفات الإدارية؟
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ما هي المصروفات التي تُعد جزءًا من المصروفات الإدارية المتكررة؟
ما هي المصروفات التي تُعد جزءًا من المصروفات الإدارية المتكررة؟
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كيف يمكن تصنيف المصروفات الإدارية بشكل عام؟
كيف يمكن تصنيف المصروفات الإدارية بشكل عام؟
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أي من الخيارات التالية لا يندرج تحت المصروفات الإدارية؟
أي من الخيارات التالية لا يندرج تحت المصروفات الإدارية؟
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Study Notes
Introduction to Life Insurance
- Life insurance is a method to mitigate financial losses from risks associated with an individual's or family's life.
- It benefits both individuals and society.
- For individuals, it covers financial losses due to death or long-term illness, and helps with children's education and marriage expenses.
- For society, it's a form of regulated savings, pooling funds for investment on behalf of all insured individuals, driving economic growth.
Importance of Life Insurance
- Life insurance is crucial for several reasons:
- It is a savings and investment tool for the insured individual and an investment tool for insurance companies.
- Insurance companies use these funds to support industries, commerce, and trades, thereby boosting economic development.
- It protects against financial losses from lost income due to death, disability, illness, or retirement.
- It complements social security systems, offering additional benefits to policyholders.
Key Characteristics of Life Insurance
- Life insurance differs from property and liability insurance in several aspects:
- Risk Probability: The risk of death is certain, unlike property or liability risks (e.g., fire, theft). The date of death is probabilistic, so insuring against death is probabilistic—predicting the when rather than if.
- Mortality Rates/Insurance Premiums: Death rates increase with age, leading to varying insurance premiums based on age. Property and liability premiums do not exhibit this variation, as they typically assess identical units of risk.
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Insurance Amount: In life insurance, the entire amount is paid upon death, a complete loss. This distinguishes it as "cash" insurance, where valuation of the loss is harder. The insured and insurer agree upon a set amount paid to the beneficiaries (the insurance amount). The compensation is calculated as:
- Compensation = Insurance amount
- Property and liability is "loss" insurance where estimations of loss are easier ; compensation = actual loss.
- Policy Duration: Life insurance policies are typically long-term (5, 10, 30 years). Property and liability policies are typically short-term (yearly or less).
- Premium Payments: Life insurance premiums are often paid annually, while property premiums are usually paid upfront (a lump sum) or periodically.
Technical Basis for Calculating Life Insurance Premiums
- Life insurance premium calculation relies on several technical foundations:
- Mortality and Survival Probabilities: The probability of survival decreases with age, potentially reducing the premium as age increases, but the probability of death increases with age thereby increasing the premium, since the premiums must account for the greater risk with older individuals. For death-only policies, the probability of death increases with age.
- Interest rate: Insurance companies invest premiums to maximize returns to the organization, which affects the interest rate received, which impacts the premium (the interest rate and investment increases have an inverse relationship with the premiums).
- Administrative Costs: Fees and associated expenses for company operations are factored into the premium.
Stages of Premium Calculation in Life Insurance
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Calculation of premiums involves two key stages:
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Net Premium Calculation: This step determines the premium for covering death risk, not including administrative costs or profits. The net premium is calculated based on the principle of balancing commitments for all policyholders:
- Present value of all premiums = Present value of all insurance amounts expected to be paid in case of death
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Net Premium Calculation: This step determines the premium for covering death risk, not including administrative costs or profits. The net premium is calculated based on the principle of balancing commitments for all policyholders:
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Gross Premium Calculation: Administrative expenses and profit are added to the net premium to obtain the gross premium payable by the policyholder.
Types of Life Insurance Policies
- Life Policies: These policies guarantee specified payments upon the policy holder remaining alive during the specified period.
- Death Policies: These policies guarantee a payout to the beneficiary (the policyholder's family), provided the person dies.
- Mixed Policies: Policies cover both the case of remaining alive or dying during the period of the insurance contract. Both a payout in case of survival and payout to the beneficiaries (in case of death).
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