The Egyptian Insurance Federation stated in one of its periodicals that life insurance is a social economic system that works on the cooperation, solidarity, solidarity, and interdependence of the participating members, by collecting risks and redistributing them in a sound scientific system, to reduce the burden of loss on the individual who is harmed.
The periodical emphasized that life insurance is an organized means of saving that works to develop the individual’s savings, and it is similar to an organized savings system, as the individual’s means of stopping paying installments is linked to organized provisions and rules, which makes those savings less vulnerable to risk, and thus, developing and strengthening the elements of safety. It provides long-term and continuous protection, which makes it different from saving in banks, which can be the best savings for girls, women and their families.
The periodical explained that life insurance is medium or long-term, while the duration of insurance ranges between 10 years or more than 30 years. This entails the necessity for insurance companies to create reserve allocations called mathematical reserves, and these reserves consist of huge funds available for medium investment. Or long-term, and on the other hand, it provides money for savings in addition to the medium or low incomes of Egyptian families.
The periodical reported that personal or life insurance has economic and social importance from the economic and insurance sector standpoint. Banks and banks generate huge sums of money from the savings of policyholders, while that money works in investment and the country’s economy, as policyholders’ money can be invested for many purposes, for development, taking into account actuarial foundations. Insurance principles and investment rules. The investment of these funds results in profits for the rights of policyholders that are paid to them over the insurance period.
She pointed out that investments are the rights of policyholders and not shareholders, and therefore the Financial Supervision Authority was concerned with developing laws and legislation that regulate the foundations and investment of the insured’s funds, clarifying the investment channels that can be invested in and the percentages prescribed for each type, so that these funds are not exposed to the risk of loss.
She explained that the importance of people’s insurance is focused on the elements of risk that result in loss of income as a result of death, reaching a certain age, or for a long or limited period, as is the case in cases of illness or permanent total or partial disability that terminates service, especially with rural residents or unemployed workers. Regular.
The periodical confirmed that life insurance is divided into two main sections, namely individual and group life insurance, each of which has its own characteristics, types and advantages, but they serve the same purpose, which is to provide protection for the individual in the event of a decrease or interruption of income, in cases of death, illness, disability or old age. She explained that both types work to create the financial savings that a person needs on special occasions, such as marriage, paying school expenses, and paying treatment or illness expenses.