Elchin Balajayev Toghrul Akberli Eldar Lachinov Gara 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

Continued  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 StagePrimary NeedLife Insurance Product Young and Single Asset creationWealth 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 plansHealth 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 smokingterm life insurance price 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) Financial Needs Analysis

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

Current & Future financial obligations Spouse’s earnings, savings, investments, Life insurance you already own Life Insurance needed 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 Permanent Insurance Pros Lifelong Coverage Accumulates cash value Cons Costs are minimum 3 or 4 times more

Business related Life Insurance  Death of Active owner Business uses  Fund a buy-sell agreement  Buy time to replace an owner or a key employee  Equalize an inheritance  Pay 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.

continued  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.

Continued  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.

Continued  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.

Continued  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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