Bucharest Academy of Economic Studies [601739]

Bucharest Academy of Economic Studies
Faculty of Business Administration in foreign languages

COMPARATIVE ANALYSIS OF LIFE
INSURANCE PRODUCTS ON THE
ROMANIAN MARKET

Group 132:
Andreea ROMAN
Sînziana SĂNDIC Ă
Lorena ȘERBĂNESCU

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Table of Contents
1. What is life insurance? ………………………….. ………………………….. ………………………….. ………… 4
1.1 Parties to contract ………………………….. ………………………….. ………………………….. …………. 4
1.2 Contract terms ………………………….. ………………………….. ………………………….. ……………… 4
1.3 Costs, insurability, and underwriting ………………………….. ………………………….. …………… 5
1.4 Death proceeds ………………………….. ………………………….. ………………………….. …………….. 5
2. Life insurance market in Romania ………………………….. ………………………….. …………………….. 6
3. Life insurance products on the Romanian market ………………………….. ………………………….. .. 6
3.1 BCR Life Insurance ………………………….. ………………………….. ………………………….. ………. 6
3.1.1 The investment account with life insurance ………………………….. ………………………… 7
3.1.2 BCR Garant ………………………….. ………………………….. ………………………….. …………… 7
3.2 Groupama Asigurari ………………………….. ………………………….. ………………………….. ……… 8
3.2.1 Mixed life insurance ………………………….. ………………………….. ………………………….. . 8
3.2.2 Life insurance with savin g for children ………………………….. ………………………….. …. 9
3.2.3 Protection insurance in case of death ………………………….. ………………………….. …… 10
3.2.4 Decreasing term insurance ………………………….. ………………………….. …………………. 10
3.3 Generali ………………………….. ………………………….. ………………………….. …………………….. 11
3.3.1 Majorat ………………………….. ………………………….. ………………………….. ……………….. 11
3.3.2 Classic Plus ………………………….. ………………………….. ………………………….. …………. 11
3.3.3 Practic Plus ………………………….. ………………………….. ………………………….. ………….. 11
3.4 Astra Asigurari ………………………….. ………………………….. ………………………….. …………… 12
3.4.1 Garant Individual ………………………….. ………………………….. ………………………….. …. 12
3.4.2 Astra Avantaj Protect ………………………….. ………………………….. ………………………… 12
3.4.3 Viitorul ………………………….. ………………………….. ………………………….. ……………….. 12
3.4.4 Garant Group ………………………….. ………………………….. ………………………….. ………. 12
3.4.5 Economica ………………………….. ………………………….. ………………………….. …………… 13
3.5 Asirom ………………………….. ………………………….. ………………………….. ………………………. 13
3.5.1 Life Control ………………………….. ………………………….. ………………………….. …………. 13
3.5.2 Renta Master ………………………….. ………………………….. ………………………….. ……….. 13
3.5.3 Easy Life ………………………….. ………………………….. ………………………….. …………….. 13
3.5.4 Capital Forte ………………………….. ………………………….. ………………………….. ………… 13

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3.5.5 Optimal ………………………….. ………………………….. ………………………….. ………………. 14
3.5.6 Aroclas Forte ………………………….. ………………………….. ………………………….. ……….. 14
3.6 NN ………………………….. ………………………….. ………………………….. ………………………….. .. 14
3.6.1 Prudent30 ………………………….. ………………………….. ………………………….. ……………. 14
3.6.2 Smart ………………………….. ………………………….. ………………………….. ………………….. 15
3.7 Allianz -Tiriac ………………………….. ………………………….. ………………………….. …………….. 16
3.7.1 Savings plan for children ………………………….. ………………………….. …………………… 16
3.7.2 Life insurance with savings ………………………….. ………………………….. ……………….. 16
3.7.3 Life insurance with simple protection ………………………….. ………………………….. ….. 17
3.7.4 Dinamic invest ………………………….. ………………………….. ………………………….. …….. 17
3.7.5 Garantis Plus ………………………….. ………………………….. ………………………….. ……….. 17
4. Conclusion ………………………….. ………………………….. ………………………….. ………………………. 17
5. Reference list ………………………….. ………………………….. ………………………….. …………………… 17

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1. What is life insurance?

Life insurance or life assurance is a contract between an insurance policy holder and an insure r
or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the
benefit) in exchange for a premium, upon the death of an insured person (often the policy
holder). Depending on the contract, other events such as terminal illness or critical illness can
also trigger payment. The policy holder typically pays a premium, either regularly or as one
lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.
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; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:
 Protection policies – designed to provide a benefit, typically a lump sum payment, in the
event of specified event. A common form of a protection policy design is term insurance.
 Investment policies – wher e the main objective is to facilitate the growth of capital by
regular or single premiums. Common forms are whole life, universal life, and variable
life policies.
1.1 Parties to contract
The person responsible to make payments for a policy is th e policy owner, while the insured is
the person whose death will trigger payment of the death benefit. The owner and insured may or
may not be the same person. The policy owner is the guarantor and he will be the person to pay
for the policy. The insured i s a participant in the contract, but not necessarily a party to it.
In cases where the policy owner is not the insured (also referred to as the celui qui vit or CQV),
insurance companies have sought to limit policy purchases to those with an insurable interest in
the CQV. For life insurance policies, close family members and business partners will usually be
found to have an insurable interest. The insurable interest requi rement usually demonstrates that
the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents
people from benefiting from the purchase of purely speculative policies on people they expect to
die.
1.2 Contract terms
Special exclusions may apply, such as suicide clauses, whereby the policy becomes null and void
if the insured commits suicide within a specified time (usually two years after the purchase date;
some states provide a statutory one -year suicide clause). Any misrepresentations by the insured
on the application may also be grounds for nullification.
The face amount of the policy is the initial amount that the policy will pay at the death of the
insured or when the policy matures , although the actual death benefit can provide for greater or
lesser than the face amount. The policy matures when the insured dies or reache s a specified age
(such as 100 years old).

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1.3 Costs, insurability, and underwriting
The insurer (the life insurance company) calculates the policy prices or premiums to fund claims,
administrative costs, and profit. The cost of insurance is determined using m ortality tables
(statistically based tables showing expected annual mortality rates ). It is possible to derive life
expectancy estimates from these m ortality assumptions. The three main variables in a mortality
table are commonly age, gender, and use of tobacco . The mortality tables provide a baseline for
the cost of insurance, but in practice these mortality tables are used in conjunction with the
health and family history of the individual ap plying for a policy to determine premiums and
insurability.
Most of the revenue received by insurance companies consists of premiums paid by policy
holders, with some additional money being made through the investment of some of the cash
raised from premiu ms. Rates charged for life insurance increase with the insured's age because,
statistically, people are more likely to die as they get older. The insurance company will
investigate the health of an applicant for a policy to assess the likelihood of incurri ng a claim, in
the same way that a bank would investigate an applicant for a loan to assess the likelihood of a
default. Group Insurance policies are an exception to this. This investigation and resulting
evaluation of the risk is termed underwriting . Health and lifestyle questions are asked, with
certain responses or revelations possibly meriting further investigation.
Many companies separate applicants into four general categories. These categor ies are preferred
best, preferred , standard , and tobacco . Preferred best is reserved only for the healthiest
individuals in the general population. This may mean, that the proposed insured has no adverse
medical history, is not under medication for any con dition, and his family (immediate and
extended) have no history of early -onset cancer , diabetes , or other conditions. Preferre d means
that the proposed insured is currently under medication for a medical condition and has a family
history of particular illnesses. Most people are in the standard category. People in the tobacco
category typically have to pay higher premiums due to the inherent health problems that smoking
tobacco creates. Profession, travel history, and lifestyle factor into whether the proposed insured
will be granted a policy, and which category the insured falls. For example, a person who would
otherwise be class ified as preferred best may be denied a policy if he or she travels to a high risk
country. Underwriting practices can vary from insurer to insurer, encouraging competition.
1.4 Death proceeds
Upon the insured's death, the insurer requires acceptable proof of death before it pays the claim.
The normal minimum proof required is a death certificate , and the insurer's claim form
completed, signed, and typically notarized . If the insured's death is suspicious and the policy
amount is large, the insurer may investigate the circumstances surrounding the death before
deciding whether it has an obligation to pa y the claim.
Payment from the policy may be as a lump sum or as an annuity , which is paid in regular
installments for either a specified period or for the beneficiary's lifetime .

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2. Life insurance market in Romania
Life insurance is the second -largest segment in the country's insurance industry, accounting for
21% of gross writte n premium in 2012. The main reason for the decline in gross written
premium during the review period is the global financial crisis of 2008 which adversely impacted
the Romanian economy, producing high unemployment rates, a high budget deficit, and a fall in
demand. The country's GDP declined by 6.6% in 2009 and 0.9% in 2010. In 2010, the Romanian
government implemented austerity measures such as a reduction in government employee
salaries and social security benefits. This further affected the purchasing p ower of Romanians
and their ability and willingness to purchase investment products such as life insurance. The
Romanian economy started to recover in 2011, primarily driven by a considerable increase in
agricultural production .
The life insurance industry has a low development level in Romania compared to other European
countries and the penetration degree is far behind that of other European countries or of the
countries in the region. This is one of the conclusions of the Competition Council’s study on t his
market, carried out in February 2015.
In terms of gross underwritten premiums, the life insurance sector in Romania has a 0.3% share
of the GDP, the same as in Bulgaria while the European average stands at 4.5% of the GDP.
Hungary has a 1.4% share, Slo vakia has a 1.6% share and the Czech Republic, 1.8%. In terms of
insurance premiums, a Romanian pays on average EUR 16 per year, far below the Eur opean
average of EUR 1,072 per year.
According to data provided by the Romanian FSA, the local insurance marke t saw a 7.6%
positive change in GWP at the end of the 3rd quart er of 2015, to EUR 1.43 billion, with l ife
insurance GWP going up by 9.46% .
Although the Unit -Linked segment recorded the best dynamic among the life insurance lines, in
absolute terms the high est contribution to the overall sector's premium growth, of about EUR 15
million, was provided by the traditional life insurance products. However, neither the life
insurance weight in the overall market portfolio, nor the subclasses' share in total GWP, c hanged
significantly.
The Top 3 Romanian insurers are ALLIANZ TIRIAC (12.15% market share), OMNIASIG VIG
(10.96%) and GROUPAMA (9.14%). NN Insurance leads the life insurance segment,
maintaining an undisputable position, with an almost 35% market share, wh ile ALLIANZ
TIRIAC holds the top position on the non -life segment (13.8%).
3. Life insurance products on the Romanian market

3.1 BCR Life Insurance
BCR Asigurari de Viata Vienna Insurance Group is a member of Vienna Insurance Group, one
of the largest internati onal insurance groups in Central and Eastern Europe. Founded in 2005 as a

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subsidiary of BCR, the company has started operating in 2006. That year, Erste Group became
the major shareholder of BCR and BCR Asigurari de Viata went directly into top 10, ranking the
8th position in the life insurance industry in Romania. In September 2008, Vienna Insurance
Group (VIG) became the major shareholder of the company.
This company offers two products regarding life insurance: the investment account with life
insurance and BCR Garant.
3.1.1 The investment account with life insurance
This product is a life insurance that combines two components:
Investment – reflected by investing in a mix of investment programs (investment funds)
with some degree of risk or a single investmen t program based on the risk tolerance of the client;
Protection – reflected by life insurance that guaranteed sum assured in case of death; In
case of death of the Insured, the Insurer shall pay the higher of the sum assured and guaranteed
account value individually assessed in the last trading day before the date of notification of
death, plus 10% of the sum insured guaranteed .
Features:
 The insured : any person aged between 18 and 70 years ;
 Period of insurance : 5-57 years ;
 Payment of insurance premiums : Unique, Annual, Semestrial, Guartely, Monthly ;
 Currency : Lei or Euro;
 Minimum annual premium : 5000 Lei or 1250 Eur o.
Benefits:
 Protection : The family is protected in case of death of the insured ;
 Accessibility : Offers the possibility of investing in the capital markets with small
amounts. Depending on the inclination that one has to risk, the customer choose their
investment strategy;
 Transparency and Flexibility: The customer can always check the value of his account;
can transfer money to other investme nt programs or may choose any combination of
these ;
 Tax Advantages : Benefits derived from the investment and the amount representing the
present value of the individual account at the end of the contract are not subject to
taxation;
 Time Saving : Modern payment methods (using internet banking, automatic payment
from your account by direct debit).
3.1.2 BCR G arant
This credit -linked insurance is a life insurance which, beside the protection component (amount
insured in case of death) also has an investment comp onent with a unique feature – it guarantees
the client the repayment of the invested capital in proportion of 100% plus a guaranteed return.

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Features:
 The insured’s age on the insurance contract starting date must be at least 18 and at most
68, so that, w hen the insurance contract expires, it should not be over 75.
 The payment of the insurance premiums may only be made one time.
 If the insured dies, BCR Asigurari de Viata VIG will pay to the beneficiary the bigger
amount between the insured amount in case of death and the value of the individual account
(calculated based on the market value of the individual account on the death date) increased by
10% of the insured amount in case of death.
 On the maturity of the contract, BCR Asigurari de Viata VIG will pa y to the beneficiary
the value of the account, consisting of the invested capital plus the guaranteed output.
Benefits:
 Guarantee of capital and return at the end of the contract;
 Protection in case of death by the amount paid in such event;
 No medical exa mination necessary for the BCR Garant life insurance;
 Transparency: the evolution of the unit value of the net asset will be published regularly
on the web site www.bcrasigviata.ro;
 The damages and amounts collected from life insurance policies are not sub ject to
taxation under the laws in force;
 An excellent return for your money;
 Guarantee of capital and return doubled by the protection of the loved ones;
 The security offered by a life insurance;
 Sure gain due to the investment component of the product;
 Access to high quality services provided by three leaders in the financial sector in
Romania and EEC: BCR, BCR Asigurari de Viata Vienna Insurance Group and Erste Bank.

3.2 Groupama Asigurari
Groupama Asigurari is a member of Groupama, a mutual insurance, bank ing and financial
services group. Having a tradition of over 100 years in France, the group has entered the
Romanian market during the period 2007 -2008, through the acquisition of three local insurance
companies : Asiban, BT Asigurari and OTP Asigurari . This company offers the following
produc ts of life insurance:
3.2.1 Mixed life insurance
Benefits:
 Protection in case of death, with the possibility of doubling the amount insured;
 A sum of money at the end of the insurance period ;
 At the end of the contract, the beneficiary will receive a sum of money, resulting from
investing a part of the premiums paid ;
 Complete protection through the possibility of attaching the following supplementary
insurances : death caused by an accident; death by any other cause; death a nd permanent

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invalidity caused by an accident; permanent invalidity, partial or total, caused by an accident;
permanent invalidity, partial or total, by any other cause; medical expenses caused by an
accident ; medical expenses by any other cause; temporary work incapacity caused by an
accident; temporary work incapacity by any other cause; surgical interventions caused by an
accident; surgical interventions by any other cause; fractures caused by an accident; burns
caused by an accident; severe diseases – pack I; severe diseases – pack II; exemption from
the payment of the insurance premiums due to the invalidity of the insured.
Advantages:
 Flexibility . The possibility to choose : the structure of the contract ; the duration of the
contract ; the value of the insured amount for the contract and for the supplementary
insurances; the value and pay ment frequency of the premiums;
 Safety of the invested capital. Protection against inflation for contracts in LEI and of
indexation for contracts in a different currency ;
 Swift payment of insurance benefits ;
 Consultancy in identifying the optimal financial solution.

3.2.2 Life insurance with saving for children
This product has two buying options : the Standard option , wherein the insurance can be bought
by only one of the pa rents and t he Premium option , wherein the insurance can be bought by both
parents .
Benefits:
 Complete protection through the possibility of attaching the following supplementary
insurances: the child’s hospitalization caused by an accident; surgical interv entions for
the child caused by an accident; exemption from the payment of the insurance premiums
due to the invalidity of the policy owner; death by any cause of the policy owner
(available only with the Premium option).
Advantages:
 Flexibility. The pos sibility to choose: the structure of the contract; the duration of the
contract; the value of the insured amount for the contract and for the supplementary
insurances; the value and payment frequency of the premiums;
 Safety of the invested capital. Protect ion against inflation for contracts in LEI and of
indexation for contracts in a different currency;
 Swift payment of insurance benefits;
 Consultancy in identifying the optimal financial solution ;
 Accumulation of benefits in a separate account, starting wit h the third year of the policy.

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3.2.3 Protection insurance in case of death
Benefits :
 Complete protection through the possibility of attaching the following supplementary
insurances : death caused by an accident; death by any other cause; death and permanent
invalidity caused by an accident; permanent invalidity, partial or total, caused by an accident;
permanent invalidity, partial or total, by any other cause; medical expenses caused by an
accident; medical expenses by any other cause; temporary work incapacit y caused by an
accident; temporary work incapacity by any other cause; surgical interventions caused by an
accident; surgical interventions by any other cause; fractures caused by an accident; burns
caused by an accident; severe diseases – pack I; s evere diseases – pack II; e xemption from
the payment of the insurance premiums due to the invalidity of the insured.
Advantages:
 Flexibility. The possibility to choose: the structure of the contract; the duration of the
contract; the value of the insured amount for the contract and for the supplementary
insurances; the value and payment frequency of the premiums;
 Safety of the invested capital. Protection against inflation for contracts in LEI and of
indexation for contracts in a different currency;
 Swift payment of insurance benefits;
 Consultancy in identifying the optimal financial solution;
3.2.4 Decreasing term insurance
This product can be used as a financial guarantee in the case where the policy owner gets a bank
loan. The credit balance will be covered by the in surance if the unwanted event actually happens.
Benefits :
 During the period of the contract, the policy owner can opt for supplementary protection,
without the need of getting another insurance ;
 Complete protection through the possibility of attaching the following supplementary
insurances : death caused by an accident; death by any other cause; death and permanent
invalidity caused by an accident; permanent invalidity, partial or total, caused by an
accident; permanent invalidity, partial or total, by any other cause; medical expenses
caused by an accident; medical expenses by any other cause; temporary work incapacity
caused by an accident; temporary work incapacity by any other cause; surgical
interventions caused by an accident; surgical interventions by any other cause; fractures
caused by an accident; burns caused by an accident; severe diseases – pack I; s evere
diseases – pack II; e xemption from the payment of the insurance premiums due to the
invalidity of the insured.

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Advantages:
 Flexibility. The po ssibility to choose: the structure of the contract; the duration of the
contract; the value of the insured amount for the contract and for the supplementary
insurances; the value and payment frequency of the premiums;
 Safety of the invested capital. Protec tion against inflation for contracts in LEI and of
indexation for contracts in a different currency;
 Swift payment of insurance benefits;
 Consultancy in identifying the optimal financial solution .

3.3 Generali
The history of Generali Group in Romania started in 1835 with the establishment of its first
branch in the largest Romanian commercial city of the era, Braila, and having mainly the object
of ensuring transported goods. Generali is a provider of car insurance, house insurance, travel
insurance, life insu rance, liability insurance and accident insurance.
The company offers three types of life insurance : Majorat, Practic Plus and Clas sic Plus.
3.3.1 Majorat
This is the saving plan that offers flexible solutions for protecting children's future. This
insurance i s destined for parents that have children with ages below 20 years old and are looking
to financial support when their children are going to start their life on their own. The contract’s
time limitation is establishes according to the difference between 25 and the children’s age. This
insurer’s advantages are the followings: for children with good grades and scholarships Generali
overpays 50% of the profit participation, the client has the opportunity to decide when he/she
will pay the sum assured plus the participation in earnings: full at the age of 18 or at any age
between 18 and 25 years and if it is needed, the customer can receive in advance a portion of the
accumulated capital, if he/she or his/her child is in need of an emergency surgery.
3.3.2 Classic Pl us
This is a life insurance covering the risk of death. The contract can last between 5 and 30 years.
The maximum age that you can have when signing the contract is 70 years old. Classic Plus is a
life insurance that offers solutions against unwanted event s, and financial stability for Generali’s
clients and their families. Advantages: the client chooses who will be the beneficiary, what is the
structure of the contract and the time he/she wants to extend it, the payment system is flexible,
you can choose t o pay annually, half -yearly or quarterly, depending on client's income and the
client can protect his/her capital by choosing automatic indexation of the insured amount with
the inflation index.
3.3.3 Practic Plus
This is a mixed life insurance, flexible, an opt imal solution for savings and protection. The
customer is benefiting from the assured sum or at the end of the contract, or in the case of
insured risk in this period stipulated by the contract. This policy can be signed for a period
between five and 30 ye ars. Advantages: the client chooses who will be the beneficiary, what is
the structure of the contract and the time he/she wants to extend it, the sum insured is guaranteed,

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the payment system is flexible, you can choose to pay annually, half -yearly or qu arterly,
depending on your income and the income from life insurance is not taxable.

3.4 Astra Asigurari
Astra Asigurari company entered the insurance market as a strong and stable player since 1991,
when it was separated from the former state -owned company ADAS, benefiting from extensive
experience on the national and international insurance market. Astra Asigurari offers five typ es
of life insurances : Garant Individual, Astra Avantaj Protect, Viitorul, Garant Group and
Economica.
3.4.1 Garant Individual
This is a unique insurance package on the market today that gives families financial protection
in case an unexpected and unpleasant event occurs, but in the same time is a flexible package
that people can achieve according to their income. The period of the cont ract could last between
1 and 59 years. The price of this type of policy is very favorable because the value of a
minimum annual premium is only 200 lei. The premium can be paid regularly: annual,
quarterly, monthly or quarterly basis or once at the end of the contract. The lower the frequency
of payments is the client has a greater advantage because he/she benefits from a reduction of
the premium.
3.4.2 Astra Avantaj Protect
This is a life insurance policy that provides a very complex protection at an accessi ble price.
Any person with an age between 18 and 60 can apply for this type of insurance. Advantages:
the clients can benefit from additional income in case of accidents requiring hospitalization,
surgery or in case of disability and the insured amount is doubled in case of an accidental death
of the insured person.
3.4.3 Viitorul
This is the policy you need if you want to offer your child a greater start in life, college
education, money for marriage or money for the start up of a business. This insurance is valid for
a minimum period of 7 years and until the child is 25 years old. The insured amount can be
received as a once payment or as an annual payment for a period between 4 and 6 years. The
child is an unique beneficiary. The minimum premium is 50 lei/ m onth. The policy’s currency is
either RON or EURO.
3.4.4 Garant Group
This is a group life insurance, that gives employees additional salary rights with the purpose of
self motivating the employees and gaining their loyalty. Advantages: the employers can prot ect
their businesses by avoiding high staff turnover, gaining employees loyalty by offering them a
savings account that they can access after 4 years and full protection of the employees against
several risks.

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3.4.5 Economica
This life insurance is a policy tha t offers financial security and is being based on a small
investment that will further give the client guaranteed minimum interest for the entire duration
of the contract. The beneficiary could be any person with the age between 0 and 77 years old.
Advanta ges: it is a good choice for the ones that want additional income at retirement, the
customer can modify the duration of the contract anytime and the amount of the minimum
monthly premium is only 50 Lei.

3.5 Asirom
For more than 20 years, Asirom has been a traditional Romanian insurance company that
provides its customers with favorable insurance policies, safety and comfort. Asirom offers
numerous life policie : Life Control, Renta Master, Easy Life, Capital Forte, Optimal, Global
Forte and Aroclas Forte.
3.5.1 Life Control
This is a simple and flexible life insurance which gives financial protection against death of any
cause while covering also eight additional risks in the insurance contract. The duration of the
contract is one year. This policy is a favorabl e one because it has a high degree of coverage, a
small price and there is no need for formalities, the policy is issued instantly, electronically,
without the need for any waiting period.
3.5.2 Renta Master
This insurance consists of a financial support for ch ildren’s education. Money is destined to
support collage taxes or other education expenses. The duration of the contract can last between
5 and 20 years. The payment system is flexible; you can choose to pay annually, half -yearly or
quarterly. In case of t he death of the insured, the company takes over the premium payments, the
insurance remains valid and the beneficiary no longer has to pay in the remaining time. Another
advantages of this policy is the fact that the client can interrupt the contract if he /she made the
last 12 payments in time. Moreover , the client can reactivate the policy after two years from the
last payment.
3.5.3 Easy Life
This is a simple and flexible life insurance which gives financial protection against death of any
cause while coverin g also three additional ri sks in the insurance contract. The contract lasts one
year. The payment system is flexible; you can choose to pay annually, half -yearly or quarterly .
3.5.4 Capital Forte
This is a policy destined for economies that also includes the cov erage of two risks. It offers its
possessor control and financial safety. The duration stipulated by the contract can vary between 5
and 30 years. It provides several advantages like protection against inflation by automatic
indexation and the flexibility of the payments meaning that the client could pay the sum owed up
front at the beginning or it can be organized in installments.

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3.5.5 Optimal
This insurance combines the following elements: savings, financial protection, protection in case
of accidents and pro tection in case of invalidity. The duration of this policy is between one and
four years. The payment method is represented by a pension received on a definite period of
time, between 4 and 20 years. The facility of this insurance is the fact that if the i nsured person
dies before the expiration date of the contract, the company refunds the insurance premium
minus the expenses in the first year.
3.5.6 Aroclas Forte
This is a life insurance policy with two components – survival and death which is covering also
five additional risks. The contract’s duration is situated between 5 and 30 years. The payments
are flexible. It offers additional protection against five more risks like accidental death,
accidental permanent disability, accidental fractures and burns from accidents.

3.6 NN
In 1963, De Nederlanden, a Dutch brand specialized on fire insurance, and Nationale, company
specialized on life insurance, merge and form Nationale – Nederlanden. From 1960 to 1980,
Nationale Nederlanden, bought a lot of insurance companies worldwide, making large
acquisitions in the US and starting new operations in Europe and Asia.
3.6.1 Prudent30
It is an insurance that covers the risk of death from any cause and death from accidents,
providing assurance that the family will receive the insure d amount set in this case. It does not
include part -saving or capitalization, but if nothing happens by the end of the contract, the client
gets an amount of money back.
Features :
 The age of entry into insurance is minimum 18 and maximum 65 years. Duration of the
contract could be between 5 years and 30 years (or until they reach 80 years by the
insured person) multiple of 5 years. Assured amount is between 30,000 and 900,000 Lei
(multiple of 10,000).
 The beneficiaries will receive 100% of the assured amoun t, in case of death from any
cause or 200% of the assured amount, in case of accidental death of the insured person.
 The assured amount varies depending on the level of the insured’s income, the debts
(loans) and the value of family maintenance costs to a minimum of 1 year.
 The premium is constant and it is calculated according to age, insured sum and duration
of the contract. The frequency of premium payment can be monthly, quarterly, half
yearly or annually.
 The beneficiaries of the insurance are chose n by the client. If they are not stipulated in
the contract, the heirs will be appointed legal or testamentary. In case of death, the
beneficiaries may request a fix advance of 2,500 lei.
 If by the end of the contract none of the risks insured happen, NN r eturns 30% of the
premiums paid for the main insurance.

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 Also, during the contract the insured can change the method and frequency of payment,
the sum insured, the beneficiaries or the contractor.
Advantages :
Accessibility
 insurance premiums are lower than for insurance with savings or investment
component
 the client gets discounts of premiums, depending on the frequency of payment
Flexibility
 the client can attach additional insurance to extend the level of protection for
himself and for other family membe rs(coverage for disability due to accidents,
coverage for serious diseases, hospitalization and surgery due to accidents or illness,
the option premium payment exemption)
 the client can change beginning in the second year of the contract sum insured. And
if happy moments of your life, you modfica sum insured without medical evaluation
Guarantees
 the warranty that the client’s family will receive the sum insured chosen, in case of
death, thus managing to overcome possible financial difficulties that might fa ce
 the insurance is constant throughout the performance of the insurance contract, if the
sum insured does not change
3.6.2 Smart
The product can be purchased only for the insured or it can be included in the Smart package the
partner or the children. The policy covers death from any cause, death from accident,
hospitalization due to accident, accident surgery. Its duration is of 5 years.

Features :
 The age of entry into insurance of the insured person should be between 18 and 50 years
and between 1 and 17 for the co -insured (children).
 There are 2 options of insurance cover. In the variant for the couple, both insured persons
will benefit from the same insurance cover. The insured amount of each component will
increase annually at each anniversary with a fixed percentage (10%) applied to the initial
sum assured; the first will not change.
 The premiums are calculated according to three predefined age ranges: 18 -30 years; 31-
40 years; 41-50 years The premiums are constant throughout the contract ;
 If before the end of the contract none of risks insured happen, the premiums paid are not
returned.
Advantages :
Accessibility:
 is a very inexpensive life insurance;
 considerable reduction package for couple

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 insurance premium is reduced to the inclusion of children in i nsurance
Easy and fast:
 very simple (with a simplified medical evaluation)
 if the client opt for the variant couple there is only one premium paid for both insured
persons
Guarantees:
 the amounts insured are guaranteed when concluding policies. They will grow
annually by 10% without the insurance premium to be amended;
 insurance premiums remain constant during the contract.

3.7 Allianz -Tiriac
The foundations of the current business Allianz -Tiriac Insurance were made in 1994 with the
establishment of the insur ance company "Ion Tiriac" SA (ASIT). Allianz -Tiriac currently offers
a full range of products and financial planning services and protection, on all segments of
insurance – auto, property, liability, life, health – but also in the management of private pen sions.
3.7.1 Savings plan for children
At a set age, the child will receive the financial support he needs to study, to set up his own
family or other additional coverings of financial protection in difficult situations (accident,
hospitalization, etc)
The clien t starts to put aside some money for the child since he is small. The money can be
protected from inflation by one percent annual indexation approved by the client. This money is
invested by Allianz -Tiriac and the child will receive on the maturity of the contract, additional to
the benefits guaranteed, appropriate participation of investment profit earned.
At a set age, the child will receive the financial support he needs to study, to set up his own
family or other additional coverings of financial protec tion in difficult situations (accident,
hospitalization, etc)
Also, Allianz -Tiriac guarantees that at the maturity of the contract end the child will receive the
money, even in the unfortunate event that, in the meantime, the parent will die.
3.7.2 Life insurance with savings
This life insurance can mean financial support at the withdrawal from professional activity,
financial protection for loved ones in the case of a dramatic event, health financial protection in
case of accidents etc.
With this life insurance, the client starts to put aside some money regularly. This money is
invested by Allianz -Tiriac in financial instruments with low -risk. At the end of the insurance
period, the client will receive the money established, as well as a share of the profit earned from
investing.
Also, Allianz -Tiriac guarantees that, in the unfortunate event of death, the ones designated by the
client will receive the financial support established.

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Also, if the client has a more difficult time financially, the company offers a gra ce period of 60
days, where you can defer payment of the insurance premium.
3.7.3 Life insurance with simple protection
In this type of insurance, the beneficiary of the policy receives the money set only if the insured
risk occurs, with no other option on capit al accumulation (savings). Therefore, the cost of this
product is extremely advantageous, as it has only protection component. The sum insured can be
protected from inflation by one percent annual indexation approved by the policyholder.
3.7.4 Dinamic invest
Dinamic invest is a policy that gives the client access to investment programs with high risk or
medium risk and the possibility of investment in investment programs with low risk, as the
solution of refuge in case of unexpected movement of capital markets c aused by the financial
and economic conditions that are in a continuous change. This insurance offers dynamism,
flexibility, transparency, financial safety and professionalism in the investment management.
One of the advantages that this insurance has is t he fact that the client knows which part of the
insurance premium is allocated for protection and which part of the insurance premium will go
exclusively in investment, so that the customer has full control over the amounts they invest. If
an unexpected ev ent happens, the client’s family receives the needed financial support calculated
as the sum of the value of your investment account and the sum insured for death.
3.7.5 Garantis Plus
Garantis Plus is the most suitable choice in terms of insurance policies . If the client is looking for
an increase in income on a medium period of time, to diversify their ways of placing money, to
provide the financial support of their loved once in case of an unfortunate event or they want a
future investment that provides them with a guarantee. This policy offers the possibility to
accumulate a large amount of money on a period of 10 years. Apart from death coverage, the
client has the possibility to invest in complex financial instruments in international markets, with
small amou nts of money.
4. Conclusion

In conclusion, life insurances are financial products offered by specialised companies which
contain , from case to case, protection policies – provide a benefit when a specified event occurs
and investment policies – facilitate the grow th of capital.
In the case of the first category, the insurer promises to pay a designated beneficiary a sum of
money (the benefit) in exchange for a premium, upon the death of an insured person . The cost of
a life insurance policy is called the i nsurance premium and it is established by the insurer taking
into account the type of product offered, the insured amount, the duration of the contract, the
risks covered etc.
In the case of the second category, a part of the premium paid covers the prote ction side of the
contract, whilst another part is invested by the insurance company and paid to the client at the

18
end of the contractual period, or even before, together with a part of the profit obtained through
the investment.
Insurance companies prese nt potential customers with a multitude of reasons for which they
should get a life insurance policy. Besides the commercial factor, these reasons can be
summarized as follows:
– A life insurance represents a minimal support for one ’s family or loved ones in
the unfortunate event of one ’s death or in the case when the ability to work is
accidentally lost.
– Moreover, a life insurance is a financial instrument that facilitates the process of
money -saving in a n organized way, money which can prove to be crucial during
difficult times or once one reaches the retirement age.
In other words , life insurances are financial services whose purposes are to cover pecuniary
losses caused by the occurrence of certain events and also to balance the budget of a person or
family whenever it is destabilized by decease, invalidity or illness.
In the case of traditional investment policies, the money is invested in low risk financial
instruments, such as: government securities, corporate bonds or bank deposits. This ensure s that
the evolution of the investment is easy to forecast and its risk is low. However, the yield is also
diminished.
There are also unit -linked insurances , through which the premiums are invested in one or several
investment programs, with different degrees of risk (low, medium or high). For unit-linked
products, the financial instruments used by the insurers are: government securities (very low
risk), corporate bonds (low risk), bank deposits, shares and investment funds.

On the Romanian life insurance market, e ach company is trying to gain competitive advantage
by offering different facilities for each type of policy. Classical life insurances with no additional
risks coverage are no longer enough in the vigorous pursuit for bigger market share. Some
companies added value to their policies by introducing child financial support which consist of
funds for university taxes or other education expenses, money for dowr y or for the start up o f a
new business; retirement funds; group insurances with the purpose of gaining employee’s loyalty
by giving them additional salary rights. What is more, there are special life insurances designed
especially for women, which cover illnesses to which women are prone. Moreover, some
companies provide their clients with decreasing term insurances. This product can be used as a
financial guarantee in the case where the policy owner gets a bank loan. The credit balance will
be covered by the in surance if the unwanted event actually happens .

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5. Reference list
World Wide Web pages:
About ASIROM (2016), [Online], Available : http://www.asirom.ro/about -us.html , [6 Jan 2016]
Asigurare Viata (2016), [Online], Available : https://www.allianztiriac.ro/asigurari -persoane –
fizice/asigurare -viata , [6 Jan 2016]
Asigurari de vi ata (2016), [Online], Available : https://www.groupama.ro/persoane –
fizice/asigurari -de-viata , [6 Jan 2016]
Asigurari de viata (2016), [Online], Available : https://www.astrasig.ro/ro/asigurari/persoane –
fizice/asigurari -viata , [6 Jan 2016]
Despre Allianz -Tiriac (2016), [Online],Available : https://www.allianztiriac.ro/companie/Despre –
Allianz -Tiriac , [6 Jan 2016]
Despre Groupama Asigurari (2016), [Online], Available : https://www.groupama.ro/despre –
noi/groupama -asigurari , [6 Jan 2016]
Despre noi (2016), [Online], Available : https://www.generali.ro/despre -noi/generali -in-romania ,
[6 Jan 2016]
Despre noi (2016), [Online], Available : https://www.nn.ro/nn -in-romania , [7 Jan 2016]
History (2016), [Online], Available: https://www.bcrasigviata.ro/about -us.html , [6 Jan 2016]
Investment and prote ction (2016), [Online], Available: https://www.bcrasigviata.ro/Invest ment –
and-Protection .html , [6 Jan 2016]
Life Insurance (2016), [Online], Available : http://www.asirom.ro/ , [6 Jan 2016]
Life insurance (2015), [Onli ne], Available: https://en.wikipedia.org/wiki/Life_insurance , [6 Jan
2016]
Planuri pentru protectie (2016), [Online], Available : https://www.nn.ro/prot ectie , [7 Jan 2016]
Rosca, A. (2015) EXCLUSIVE: Top 10 Romanian insurance companies at the end of March,
[Online], Available : http://insurance.1asig.ro/EXCLUSIVE -Top-10-Romanian -insurance –
companies -at-the-end-of-March -article -2,3,100 -6435.htm , [6 Jan 2016]
Viata (2016), [Online], Available : https://www.generali.ro/asigurari/persoane -fizice/viata , [6 Jan
2016]
Wood, L. (2014) Research and Markets: Life Insurance in Romania, Key Trends and
Opportunities to 2017 , [Online], Available : http://www.reuters.com/article/research -and-
markets -idUSnBw235641a+100+BSW20140523 , [7 Jan 2016]