LIFE INSURANCE AS THE INSTRUMENT OF THE FINANCIAL COMPETENCIES DEVELOPMENT OF CITIZENS
Abstract
The article is dedicated to the coverage of the essence of life insurance as a tool for citizens’ financial competencies development. Financial literacy as a part of financial competencies should be understood as a proper level of knowledge and skills in the sphere of finance, due to which it is possible to assess correctly the market situation and make right decisions. In this context life insurance as a considerable component of financial sector of economy is to be analyzed and studied. There are considered the functions and directions of life insurance the aim of which is improvement of citizens’ life quality and minimization of financial losses in unforeseen circumstances. Social security in the frames of life insurance is shown. The main factors which are the components of reliability of insurance companies are described. There is thoroughly observed a cumulative life insurance policy which consists of cumulative component and risk component as well. The factors which influence on the cumulative life insurance policy cost are reviewed. The difference between concepts of invalidity and disability is considered. Such indicators as insurance premiums and insurance payments during the period of life insurance companies’ activity are analyzed. The article contains the data of main life insurance companies in Ukraine, their financial indicators and portfolio of clients which show the coverage of life insurance market and tendencies of development. The attention is focused on the financial literacy of citizens through life insurance as a key aspect of welfare as citizens so as the state generally. The present situation in pension and social systems of our country shows inability of the state to maintain these parts of social sphere. As a result, there exists the necessity to develop new methods of involving population to the system of insurance.
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