Many people think that life insurance is a financial instrument necessary in case of death.
However, life insurance exists for life, and in most cases it is used during life. I emphasize – in life , not after it (forsikringsselskap norge) . Why?
Objects of life insurance can be property interests associated with the survival of citizens up to a certain age or term or the occurrence of other events in the life of citizens, as well as their death (life insurance)
Let me draw your attention to the fact that an event associated with “living to a certain age” is included in life insurance. I would even say that life insurance starts with survival. Why, what’s the point?
Over time, people age, and at some point they lose the ability to work and earn money. Their only source of income, the ability to work – dried up, completely stopped. The well dried up, the income ran out. How is this problem solved?
Imagine that you have a new, wonderful machine. Working on it – you earn money to support your family. You grease the machine, treat it carefully, do the necessary preventive maintenance.
However, even with the most careful handling, the time will come when the machine is completely worn out and will require replacement (Boligforsikring) . And in order to have the means to replace it – immediately after the purchase of the machine, the prudent owner will begin to create a depreciation fund. So that by the time of complete depreciation of the old machine there were means to buy a new one.
Our ability to work – the same “machine”. I emphasize – for many, the only tool that allows you to make a living. And when we get older, our essential equipment declines.
And it must be replaced by something, because if a person lives – he needs to pay expenses. And if a person is already too old to work, he will be provided with rent from the pension capital . And that means – the depreciation of our “equipment”, our ability to work – is to create pension capital during his career.
So, one of the most important tasks of life insurance is to create pension capital for a person during the time when he is young and full of energy and can work productively. That is why the risk of “survival up to a certain age” is an integral part of life insurance.
At a young age, starting his career – a person opens a contract that provides for regular contributions (Barneforsikring) . And when he lives to a mature age, that is, “survival” happened in the language of insurers – a person receives the created capital, which will provide it in his mature years.
And here we see that the term “life insurance” has a purely positive meaning: the term “survival” symbolizes a prosperous person who has completed a career, and goes into its “golden season”. And he has enough money to live this time in abundance. Therefore, it is not by chance that the definition of life insurance begins with survival.
Of course, life insurance includes not only survival. The definition also indicates death, and other events. What kind of “other” events?
For example, this event may be the age of majority, or the child’s wedding. Very often, a life insurance contract is a savings tool that allows a family to create the necessary funds for significant events in life.
And before moving on – we need to understand the terms. The law has the concept of personal insurance:
Life insurance is a part of personal insurance. What is included in life insurance: survival, death and the onset of other events
At the same time, life insurance companies have the right to provide accident insurance services and offer health insurance services.
Therefore, most often the term “life insurance” refers to life insurance itself, plus insurance against accident (NA) and mortally dangerous diseases (POPs). Very often, life insurance companies offer NA and POPs as additional options in life insurance policies.
Therefore, in a broad sense, the following services can be attributed to life insurance:
To insure your life means to open a life insurance policy, possibly with additional programs “accident insurance” and “insurance against deadly diseases”
Therefore, life insurance in a broad sense includes:
Survival insurance ;
Death insurance ;
Insurance of other events;
Insurance against accidents ;
Insurance against deadly diseases.