Tariffs and calculation

The detailed arrangement of a life insurance is called tariff. The tariff describes thereby all insurance-technical corner points of the life insurance product. In addition for example the maximum age belongs with beginning of insurance, the maximum insured sum, the combinability with additional insurances, regulations over medical examinations during filing of an application, and above all the contribution and the power spectrum (i.e. the data, who when with the occurrence of which events, e.g. with the death of a person or when their experiencing like much must pay), and the bases of calculation in such a way specified.

By the bases of calculation one understands the tariff to reason which is appropriate the dying board (e.g. DAV 1994 T or DAV 2004 R - at present current boards of the German registrar combination), the calculation interest and the costs. The bases of calculation are unchangeable after conclusion of a contract in the principle. This does not apply compellingly to later contract increases (e.g. by dynamics).

The calculation interest is the interest rate, with which all contract values of a life insurance are calculated. Generally it is particularly well-known, because it indicates the warranty interest charges for the savings portions for capital life insurances also. In Germany by the Federal Ministry for finances in the covering resetting regulation a maximum calculation interest is specified. It applies only to those contracts, which are again locked after the entry into force of the regulation and/or after the date specified therein. The height orients itself at the ten-year average of the rotating net yield of ten-year Federal loans with a remaining time of 9-10 years. The maximum calculation interest for conclusions since 1 January 2004 amounts to 2.75%. It is lowered starting from 1 January 2007 on 2,25%. The calculation interest agreed upon with conclusion of a contract therefore keeps term maximum calculation interest with a change of the maximum calculation interest further its agitates that the insurance companies may usually use no higher interest with the computation of the covering resetting. If they promise the customer a higher interest, then they have to supply for the additional interest promises to necessary means from company funds (own capital funds) with conclusion of a contract.

Also offering contracts with lower warranty interest than the maximum calculation interest is quite possible, e.g. with "“capitalization business"” (in accordance with VAG) for the covering of requirements for life work time account over the employer.

Frequently in the press which can be found the equalization maximum calculation interest with "“the interest, with which insurance companies must pay interest on the assets of their customers at least"”, are wrongly.

The costs of a life insurance. One differentiates

• Administratives expense - costs of the current administration of the contract, which are proportionately contained likewise in each contribution, in per cent of the contribution and/or as sum (unit cost prices), in particular those
• Inkassokosten - costs of the contribution collection, which is loaded proportionately each contribution
• Rate impacts - (LV-contributions are annuities) costs of opposite yearly payers increased administration expense and for the covering of losses of interest with under-year old, e.g. monthly number way; usually the impacts amount to with monthly payers 2.5% to 5.
• Conclusion and contract installation costs - costs, which result in connection with the conclusion and the mechanism of the life insurance contract (e.g. Commission, contract documentation, risk examination, if necessary medical examination). Commissions are supervision-legally covered with 40%o (40 of thousands) on the contribution sum.

The conclusion costs are inferred usually in its entirety from the first contributions (Zillmerung), although they cause an increase of the contribution with the computation of the premiums over the entire payment of dues duration. With tariffs with savings portion this leads to the fact that in the first contract years with a notice no money arrives at the disbursement. Tariffs, with which the conclusion costs are inferred constantly from the premiums, are called ungezillmerte tariffs.

Besides the risk premiums are inferred from the contribution for the covering of the insured risk.

• The part of the contribution remaining after departure of all costs and the risk premium is the savings premium and serves - together with the calculation-moderate interest on the past assets - for the setting up the covering resetting.

• Apart from the cost categories mentioned still fees can be fixed for certain business transactions in general conditions of insurance. It acts predominantly around rare and/or in the administration very business transactions (e.g. Deferment of payment, policy loan). The fees are indicated either as absolute amount or as percentage of a size relevant for the procedure.

Kinds of the life insurance

Life insurances like it in Germany to be offered, can be divided in four large groups:

• Temporary life insurance
• Capital screen end life insurance
• Fund-bound life insurance
• Old age pension insurance

At the first three groups of life insurances a unique capital payment becomes due as achievement. These insurance is so-called Kapitalversicherungen.Die (private) old age pension insurance is also for life insurance to be counted, since it is calculated insurance-technically similar and operated. A large difference consists however of the fact that during a life insurance on the death the risk of premature death is insured and during an old age pension insurance the longevity risk in such a way specified. A regular payment becomes further on the part of the insurer due, therefore the name "“old age pension insurance"” as achievement. There are still different endowment insurances, which do not have a meaning however on the German market.

Besides numerous additional insurances are offered. The most important is thereby the inability to work additional insurance (see also for this inability to work insurance). Further auxiliary components are the accidental death additional insurance, with which a repeated of the simple death achievement is insured, and nursing care insurance achievements.

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