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Which are the most profitable and which are the safest assets?

• The assets that can bring the highest return are also those that can generate the biggest loss • Show the client this chart so they can set realistic expectations • High gain and safety at the same time,... not yet invented • In the "low risk - low gain" area are the assets in which traditional insurance capitals are invested • That is why traditional insurance returns are low

What is an asset?

• Assets are resources accumulated in the past with the purpose of obtaining profit in the future • The most common assets are: • Bank deposits • State titles • Bonds • ETFs • Actions • Real estate • Precious metals

What is an investment fund?

• An investment fund is an institution in which people jointly invest their savings • Accumulated funds are used to purchase assets • Depending on the assets in which capital is invested, there are three types of funds

What impact does duration have on unit linked policy performance?

• Between 1925 and 2018, so almost a century, whoever invested in the stock market for at least 20 years, obtained a maximum return of 19%, a minimum return of 3% and never lost

What clauses can be attached to the unit linked policy?

• Clauses can be attached to the unit linked policy to increase death protection and clauses to provide you with money for treatment in the event of an accident or illness • Some of the clauses may also cover other family members (depends on the insurer)

What is a fund unit?

• The fund unit is the unit of measure for the performance of an investment fund • The fund units in the account of a contract represent the holdings of the contractor in the investment fund, based on the premiums paid • Fund units change their value from day to day, depending on the value of the fund

Can I change the investment option?

• Yes • You can always change the way your money is invested, namely the fund allocation • You are entitled to one or two free changes each year • This depends on the insurer

How much money do I get if I cancel the unit linked policy?

• Termination of the policy actually means selling the fund units and collecting the resulting amount • The insurer will sell the fund units in your account at the price on the day of registration of the request and pay you the account value • A penalty may apply

What types of funds can a customer invest in through the unit linked policy?

• A customer who buys a unit linked policy has three types of funds at his disposal • High risk fund: investing in shares • Medium risk fund: investments in shares and deposits • Low risk fund: investments in bonds and deposits • Fund allocation is determined by the client

What happens to the unit linked policy if premiums are waived?

• Risk premiums and policy administration costs will continue to be deducted from the account value • The number of fund units will decrease over time • And during the period in which the payment of premiums was waived, the client can make additional payments • It is an advantage worth considering • With a traditional insurance, in the case of waiving the payment of premiums, the insured sums decrease • With unit linked, in the case of waiving the payment of premiums, the sum assured on death remains the same

What can I do if I see that I'm losing money?

• You are probably referring to the fact that the value of the units decreases, correct? • In this case you don't have to do anything; simply • On the contrary, if you have an amount of money available, this is the right time to invest • Please note that you only lose money if you cancel the policy when the units are cheap • Panic is the number 1 enemy of investors

How is the death benefit calculated on a unit linked policy?

• The insured amount in case of death is 5,000 lei • On the date of death, the value of the account is 38,467.82 lei • Beneficiaries upon death will receive a total allowance in the amount of: • In the "sum" option: 5,000 + 38,467.82 = 43,467.82 lei • In the "maximum" version: 38,467.82 lei

What is the assumption of investment risk?

• By assuming the investment risk, the client understands and accepts the fact that it is possible that at the maturity of the policy he will receive less money than he paid

What happens to the unit linked policy if I stop paying premiums?

• The policy will continue, including death protection, as long as you have fund units in the account • The cost of life insurance and administration costs will be deducted from the number of fund units • When the number of fund units reaches 0, the policy will terminate • The insurer will notify you of the imminent termination of the policy

What is the role of the unit linked policy for a family?

• The unit linked policy has a double role: • Family protection in case of premature death • Making a profit, in the long run • Investment specialists give the following advice: • Only invest as much as you can afford to lose

What happens to my money if the insurer goes bankrupt?

• In this case you may lose some of your money • But I would like to ask you something… • How many serious insurers have you heard of going bankrupt?

Can additional clauses be added or removed?

• Yes • This can usually be done on the policy anniversary, on application, and obviously with the insurer's agreement • If the addition of clauses is requested, the insurer will request the completion of a medical questionnaire • If he notices a deterioration in health, he will most likely refuse to add new clauses

Can cumulative benefits be paid?

• Yes • If an event is covered by more than one clause, benefits will be paid based on each clause

How am I compensated if the sum insured is less than the expenses?

• The maximum compensation you can receive is the sum insured • That's why I recommend you buy "enough" insurance from the beginning • On the other hand, you will be compensated even if you have not paid a single lei, because the insurer compensates you based on medical documents, and not on invoices

What medical expenses are covered?

• Medical tests • Drugs • Glasses • Prostheses and orthoses

Do allowances paid affect saving?

• Not • Protection and saving are independent of each other • No matter what allowances were paid to the insured during the contract period, if he is alive at the maturity of the policy he will receive the amount specified in the contract

How is supplementary clauses inflation protected?

• The inflation protection of additional clauses is done in the same way as for the basic insurance, to which the clauses are attached

If I run out of money on a clause, can I still be compensated?

• During the year in which your benefit was paid, no • But at the beginning of the next insurance year, the clause will be "refilled", so you will be able to be compensated again, if necessary • The exception is the insurance for serious illnesses, which, if you have used up, its effects cease

If I am treated in a state hospital, how will I be compensated?

• No matter which type of hospital you are treated in, you will be compensated the same • For reimbursement of hospitalization or surgical interventions, you will not be asked for invoices, but for the discharge ticket and other medical documents

What are the major risks?

• Death • Total permanent disability • Serious illnesses • If you insist on medium risks, you risk hearing an objection like "Let it go, I'll find 2-300 lei there for a hospital stay..." • To sell additional clauses, highlight the major risks, which can generate expenses of thousands or tens of thousands of Euros

If I have another life insurance policy with similar terms, will I get money from both policies?

• Yes • You can have as many life insurances as you like, and you will be compensated by each one separately, if there are the same clauses in the policies • Human life cannot be valued, as is the case with goods or property

How do you present additional clauses that provide allowances?

• Additional clauses can compensate for the drop in family income if you die prematurely • Additional clauses also give you money for treatment and protect your savings

How do you present the exemption from paying premiums in case of disability?

• From what source will you pay the premiums? • Do you work for a salary, or do you receive it as a gift? • In order to work, the first condition is to be able to work, agree? • If there were an accident that would make you unable to work, the salary would disappear, but so would the insurance, wouldn't it? • If the insurance continued, unchanged, being paid by the insurer, what would you say?

Can the insured sums be changed in the additional clauses?

• In some clauses, the insured amounts can be changed • This can usually be done on the policy anniversary, on application, and obviously with the insurer's agreement • If an increase in the insured sums is requested, the insurer will request the completion of a medical questionnaire • If he notices a deterioration in his health, the insurer will most likely refuse to increase the sums insured

What information do you require to offer the additional clauses?

• Start the discussion from protection needs, i.e. from the cost of treatment in serious situations and continue with medium risks • If you go with the average risks, the client will say that he will always find a few hundred lei for some medicine... • Avoid price discussion at this stage

How do I know the insurer will compensate me correctly?

• The insurer concludes a contract with you • That contract must be respected • Since Romanian insurers pay almost 4 million Euro per day in the form of indemnities and compensations, it means that they respect their contracts

What happens to clauses when premiums stop being paid?

• After the grace period, the additional clauses lose their validity • It is possible for the insurer to accept the reinstatement of the additional clauses, by paying the outstanding premiums and completing a new medical questionnaire • If the insured acquired an illness or suffered an accident in the meantime, the insurer may refuse to reinstate some of the clauses or reactivate them, but with exclusions

What are the average risks?

• Less serious illnesses or accidents, followed by: • Surgery • Hospitalization • Fractures • Burns • Temporary incapacity for work

What is the role of additional clauses for a family?

• Additional clauses have several roles: • Provides additional protection to the family in case of untimely death • Provides the insured with money for treatment in the event of serious illness or disability • Gives the insured money for treatment in case of less serious health problems

What are additional clauses?

• Additional clauses are sickness and accident insurance, which can be attached to the basic insurance • Some of the clauses may also cover other family members (depends on the insurer)

What risks do the additional clauses cover?

• Additional clauses cover two categories of risks: • Major risks, which can affect the financial stability of the family by depleting savings and/or reducing income • Average risks, which can affect family savings • Major risks, respectively medium risks, refer to the financial impact they can have, in terms of the cost of treatment to restore health • Sometimes average risks, such as a fracture or surgery of medium difficulty, could be covered from family savings • But the major risks, which lead to the disappearance of income and / or the sudden increase in expenses, cannot be covered from the family's savings • For a family to overcome the financial problems generated by a major risk, a source of money is needed: and this is life insurance • It is important that the risks are covered in this order: major and then medium, especially in the situation where the client does not have the money to buy all the clauses