Life Insurance

‡ Many firms are using a correlation matrix approach to aggregate the results from individual stress tests. ‡ One significant drawback of this though is that it fails to explore the interaction between risks occurring at the same time within the business model, which can lead to a material understatement (or possible overstatement) of the capital required.

‡ At the FSA we call this the 'non-linearity effect'. ‡ Firms need to recognise the potential limitations of the correlation matrix approach, but clearly our requirement to use scenario tests is one way to mitigate this.

Life Insurance
‡ In addition, the correlation matrix approach itself can be difficult because for most correlations there is limited data for stressed conditions. ‡ Despite this firms need to make some allowance for stress and consider carefully how resilient or sensitive their capital result is to changes in the stressed assumptions. ‡ ‡ Sensitivity tests are also important to identify which correlation assumptions are most material. Greater management focus on agreeing these assumptions and considering the impact of non-linearity this should give firms and ourselves more confidence in the results coming out of these models

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Car Insurance Everyone who hits the road needs car insurance. ‡ ‡ ‡ ‡ ‡ Car Insurance 101 Your First Car Insurance Policy Car Insurance FAQ's State Requirements Gap Insurance for New Cars . does everyone have enough? Here you can learn how to put together the right car insurance for u. But.

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Learn here how you can find the best policy to fit your specific health needs. Covering various types of health insurance from self-insured to PPO's along with dental insurance. ‡ Health Insurance 101 ‡ Understanding Your Health Insurance and Medical Insurance Plans ‡ What Does that Mean? Understanding Health Insurance Terms ‡ When To Continue COBRA Insurance Coverage ‡ Top 10 Ways to Get Affordable Health Insurance With No Job or Little Money ‡ Choices in Dental Insurance Plans ‡ Getting Coverage for Braces and Orthodontic Dental Care .Health and Dental Insurance ‡ Your health insurance information source.

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Disability Insurance ‡ Have you thought about how you will pay your bills if you get hurt? Disability insurance can replace a portion or all of your income if you become disabled and cannot perform your job. ‡ ‡ ‡ ‡ Disability Insurance Frequently Asked Questions Considering Disability Income Insurance How Much Disability Insurance do You Need? The Basics of a Supplemental Health Insurance Plan .

Liability is what you may be liable for such as accidents you may cause. ‡ Find out here information on how an umbrella insurance policy works and how to obtain an umbrella insurance policy .Umbrella Insurance ‡ Personal Liability Umbrella Insurance is an added protection above your current liability limits.

renter's insurance is still important just for the liability protection it provides. Find out more here why if you rent you need renter's insurance .Renter's Insurance ‡ Even if you have no personal property.

Learn more here about long term care insurance so you can decide if long term care insurance should be an option for you. .Long Term Care Insurance ‡ Long term care insurance can provide you help in paying for a nursing facility or home care for a long term illness.

. ‡ If you have an RV. boat or motorcycle it is important that you are covered properly. and Motorcycle Insurance ‡ Recreational vehicles such as motor homes and travel trailers. along with motorcycles and boats have special insurance needs. Boat.RV.

home. and auto insurance. they may not provide enough insurance for your travel plans and it is most likely they do not provide much coverage outside your country. .Travel Insurance ‡ Even if you have excellent medical.

‡ Consult your life insurance professional for a more detailed description of the various types of life insurance and how they may apply to your specific situation. there are several different types within each category. Listed below are some of the most common types. .Various Types of Life Insurance ‡ There are two primary categories of life insurance: term and permanent. ‡ However.

.a fixed amount of coverage with premiums that are fixed over a certain period of time. premiums typically remain level. Listed below are various types of term insurance ‡ Level Term . usually in 10-year increments.Term Insurance Life insurance under which the death benefit is payable only if the insured dies during a specified period. ‡ Increasing/Decreasing Term .amount of coverage increases or decreases throughout the term.

includes a renewal provision that gives the policy owner the right to renew the insurance coverage at the end of the specified term without submitting evidence of insurability. ‡ Group Term .insurance purchased typically by an employer or professional association that is intended to cover several people. ‡ Convertible Term . usually resulting in reduced the policyholder the right to convert the term policy to a permanent policy .Term Insurance ‡ Renewable Term .

the crediting rate will not go below zero . Most policies offer guarantees that if the index is negative.a form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance under which the cash value's current crediting rate is tied to the performance of a financial index. ‡ Indexed Universal Life .Permanent Insurance Life insurance that provides coverage throughout the insured's lifetime and may include an element that builds cash value.

‡ Variable life insurance . ‡ Universal life insurance . Whole life insurance may also include an element for accumulating growth (called "cash value").remains in force during the insured's entire lifetime. flexible face amounts. .Permanent Insurance ‡ Traditional Whole Life .characterized by its flexible premiums. ‡ Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum.a form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of separate account investment options. and unbundled pricing factors. provided premiums are paid as specified in the policy.

Also called flexible premium variable life insurance and universal life II. lump-sum premium .whole life insurance purchased with a single. ‡ Single-premium whole life insurance .a form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance with the investment flexibility and risk of variable life insurance. ‡ Last survivor universal life insurance (also known as "survivorship" or "second-to-die" life insurance) permanent life insurance that covers two persons and provides for payment of the death benefit proceeds only when both insured have died. It is generally designed to pay estate taxes.Permanent Insurance ‡ Variable universal life insurance .

LIFE INSURANCE CHALLENGES ‡ India Life Insurance industry came into being with the establishment of Life Insurance Corporation (LIC)in India in 1956. ‡ Till the time Insurance Regulatory and Development Authority(IRDA) Act was implemented in the year 1999. private companies were controlled by the LIC of India. ‡ The number of life insurance companies has increased by an average of three companies annually and the number of policy holders by over 25%. . ‡ In the past five years. ‡ Since 1999 onwards the market was opened for operations of private companies also in the insurance sector. life insurance has grown at a higher rate than other types of insurance.

Some of the private companies operating in the life Insurance Sector are: ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ICICI Prudential Life Insurance Birla Sun Life SBI Life Tata AIG Life Aviva Life Insurance Kotak Mahindra Life Insurance Bajaj Allianz Life Ing Vyasya Life Insurance . the Life Insurance Company of India functions solely.Major Indian Life Insurance Companies In the public sector of the India life insurance.

3% at million 1993. the ratio of life insurance policy holders rose from 7.CONCLUSION ‡ Compared with the country's population.5% in 1992 to 8. In the same period. the amount of premiums has increased by over 30% annually and its ratio rose from 0.21% of .


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