Elchin BalajayevToghrul AkberliEldar LachinovGara Aliyev

•Insurance is a risk transfer mechanism

•Insurance is a redistribution of risks between “players”

Types of Insurance

Life Non-Life

What is Life Insurance?Life insurance or life assurance is a

contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount.

An important decision for future

Families suffer Businesses fail Dreams get derailed

Costs of Procrastination

3 key questions

Do I need Life Insurance? How much Do I need? What kind of insurance should I buy?

Why do I need Life Insurance?

Provide for spouse, children Support aging parents Protect business partners, employees

Why Life Insurance? Today, you have sufficient income

providing for your family’s well-being. You are successful and your business prospers. 

Why Life Insurance

But tomorrow circumstances may become unfavorable.

Why Life Insurance? And any trauma threatens to turn into a

great problem of the family budget.   It is time today to take care of tomorrow.

Insurance Premiums are paid in two forms:

at regular intervals or in lump sums

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There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium.

In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.

Terms The value for the policyholder is derived, not

from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

General Guide To Life Insurance Plans For Different Life Stages

Life Stage Primary Need Life Insurance Product

Young and Single Asset creation Wealth creation plans

Young and Just married Asset creation and protection

Wealth creation and mortgage protection plans

Married with kids Children's education, Asset creation and protection

Education insurance, mortgage protection and wealth creation plans

Middle aged with grown up kids

Planning for retirement and asset protection

Retirement solutions and mortgage protection

Across all life-stages Health plans Health Insurance

Life Insurance for Smokers   It's often hard for smokers to get a great term life insurance price

because of the inherent risk of smoking

However, there are options. Even if you smoke cigarettes, cigars,

pipe, or chew tobacco, you could still be eligible for great rates for life

insurance for smokers.

Insurance rates are based on types of tobacco products consumed.

They're also based on how long it has been since you quit smoking.

They classify people according to their risk of dying.

If you're a “super preferred” you're going to live decades longer than anyone else so you get the lowest premiums.

But if you're only “preferred”, the premiums have started to rise because you have a shorter life expectancy.

And then come all the others with depressing titles

suggesting you may die tomorrow.

Life insurance companies have produced a type of list:

3 key questions

Do I need Life Insurance? How much Do I need? What kind of insurance should I buy?

How much Do I need? Recommended Insurance

Yearly income X 5 X 20(Rule of Thumb)

3 type of expenses

Immediate expenses Ongoing expenses Future expenses

Immediate expenses

Funeral expenses Uncovered Medical Costs Mortgage & Other debts Taxes State settlement costs

Ongoing expenses Food Clothing Utilities Transportation Health Care Insurance Rent

Future expenses

College

Retirement

Financial Needs Formula

3 key questions

Do I need Life Insurance? How much Do I need? What kind of insurance should I buy?

What kind of insurance to buy?

Type depends on: How long will I need insurance? How much money you have in your budget

now?

How long you need for… Term Insurance Permanent Insurance

?

Term Insurance 20 years normally Aging- 5 to 10 years

Pros Good for temporary needs Affordable

Cons Cost increases with age Must re-qualify when term expires

Permanent Insurance

Business related Life Insurance

Death of Active owner

Business usesFund a buy-sell agreementBuy time to replace an owner or a key employeeEqualize an inheritancePay estate taxes

Advantages of Life Insurance

(Pasha Insurance Company) Life insurance contract is concluded for a period of 5 to more years.

Insurance payments are not subject to income tax.

Should there be an accident you will receive money for treatment. The amount of payment depends on the severity of the trauma.

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Insurance payment is due also in case of disability. Upon expiration of the contract you will get the capital you intended to put by.

In case of death of the policyholder, the family will receive financial support.

Stable future for your children to a great extent depends on yourself. Thanks to our insurance plans you can save enough funds so that your children get accommodation and get a decent education.

How reliable is it to obtain an accumulative long-term life

insurance (at Pasha Insurance)? Your capital will be intact and safe regardless of

the economic situation in the country.   As per its commitment Pasha Insurance is

accountable with its authorized capital stock amounting to 20 million AZN!

Long-term investment plans in your contracts are developed by highly qualified specialists.  

You can independently decide as to how you will make contributions: once in six months, annually or in a lump sum.  

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Long-term investment plans in your contracts are developed by highly qualified specialists.  

You can independently decide as to how you will make contributions: once in six months, annually or in a lump sum.  

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The amount of the future compensation is set by you based upon insurance protection requirements and available financial resources. 

Insurance protection gets into effect immediately upon payment of the first insurance contribution.

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In the event of premature death of breadwinner, the capital set aside for your children will be increasing at the expense of the insurance company’s funds, if you express a desire to insert into the insurance contract this term.  

You decide yourself whether you want to receive the accumulated funds immediately upon expiration of the contract or in the form of life-long pension (revenue).

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