Günümüz Türkiye`sinde can sigortaları ve kar payı uygulamaları

Abstract

T.R. MARMARA UNIVERSITY BANKING AND INSURANCE INSTITUTION INSURANCE DEPARTMENT LIFE INSURANCE AND PROFIT SHARE APPLICATIONS IN PRESENT TURKEY MASTER THESIS Supervisor Prof.Dr. Fahiman Tekil Prepared by Mesut Yetişkul İSTANBUL -1994CONTENTS INTRODUCTION 1. DEATH BENEFIT INSURANCES 1 1.1. SINGLE PREMIUM PAYMENT 1 1.2. INSTALLMENT PAYMENT 3 1.2.1. Installment Payment Factor ax:n 3 1.2.2. Installments at Death Benefit Insurances 3 1.2.3.Effect of Technical Interest on Installment 5 2. LIFE BENEFIT INSURANCES 13 2.1. DIFERE INSURANCE 13 2.1.1.Difere Insurance with Premium Return 14 2.2. ENDOWMENT INSURANCE 14 2.2.1. Endowment Insurance with Increasing Capital 15 2.2.2. Endowment Insurance with Profit Share 16 2.3. BANK SAVING INSURANCES 16 3. PROBLEMS AND SUGGESTED SOLUTIONS IN PROFIT SHARE APPLICATIONS AT NOWADAYS TURKEY 24 3.1. PRINCIPLES OF PROFIT SHARE DISTRIBUTION 24 3. 1.1. Problems of Having Income 25 3.1.1.1. Blockage Date of Mathematical Reserves 25 3.1.1.2. Reinvestment Time of Accured Income 25 3.1.1.3. Investment Types 25 3.1.1.4. Minimum Income Rate 26 3. 1.1. 5. Announcement of Income Rate 26 3.1.1.6. Effect of Premium Increase on Maturity Capital 26 3. 1.2. Distribution Principles 27 3.1.2.1. The System Where the Profit Share Amount is Added to Amount of Accumulated Money 27 3. 1.2.2. The System Which Provide Formation of Additional Capital by Accepting Profit Share Amount as Single Premium in Endowment Insurance 28 3.2. SUGGESTED SOLUTIONS 42 3.2.1. Suggested Solution 1: Calculation of Mathematical reserve in 3 Months Period 42 3.2.2. Suggested Solution 2: Formation of an Actual Reserves Investment Fund 42 CONCLUTIONINTRODUCTION Life insurance is a kind insurance which takes measure for some risks that will occur, in persons future and subject to persons life. It is possible to divide life insurance into two, as death and life benefit insurances by the view of benefit. The aim in death benefit insurances, to give some indemnity to benificiary when insured dies, in life benefit insurances to warrant insured's next life period by evaluating small quantities called premium. But it is not give enough results evaluating small saving by a 9% interest rate in our country which has in inflation force. Especially in long term insurances, if the person has not expectations about future will remove from life insurance and by increasing this kind of persons a huge part of people are effected in negatively. it takes long term to clean negative opinion from people. Therefore some regulations must be made in life insurance as soon as possible. Insurance companies look from their side and take into consideration only premium collection which effect company income. In this thesis the application and life insurance of nowadays Turkey is worked in view of insured and insurer. Some problems come arise and some suggestions for solving by taking Laws into consideration. Laws no. 7397 on Supervisioin and Control of insurance Companies give necessary authority to state in position of insureds and sectors benefit. But upo to now, it is easily seen that especially in profit share application, actions that made, aren't enough by the side of insureds.-1- 1. DEATH BENEFIT INSURANCES Death benefit insurances can be considered in three types, which are; 1. Yearly term insurance 2. All life insurance 3. Long term insurance and payment of premiums can be considered as; - Single premium payment - Installment payment 1.1 SINGLE PREMIUM PAYMENT Single premium of yearly term insurance at age x is; -=qx-v (1.1) Dx Single premium of all life insurance is; Mx Cx Cx+1 Cx+2 ^w - = - + + +... + (1.2) Dx Dx Dx Dx Dx = °.x'V + 1 qX#v2 + 2<VV3 +..' + w-xqx#vw'x (1 -3) Single premium of long term insurance is; Mx`Mx+n cx Cx+1 cx+2 Cx+n-1 = + + +...+ (1.4) Dx Dx Dx Dx Dx = qx#v + 1 l^x'V2 + 2qx*v3 + + n-1 IVV` P -5) Death benefit insurance premium formulas show that, single premium is related with probability of death. Since the formula of yearly term insurance is qx-v (v=1/(1+i)), premium decreases as the amount of technical interest. You can see the comparison of qx and qx*v in table 1.2.-2 There is a difference in long term insurance. The effect of technical interest rate to the premium is not equal to the amount of the technical interest. Because the formula is summation of something. The effect of technical interest rate to the premium can be seen in table 1.3. The period of insurance is considered 10 years in the example at table 1.3. Since the formula takes form summation of v, v2, v3,v9, so the premium decreaes by the factor v4-5. These two tables show that, using technical interest in death benefit insurance premium is equal to take present value. In Turkey, maximum interest rate which is permitted is 9%. But inflation rate is 60-70% in Turkey. In table 1.4, you can see the comparison of Cx+t/Dx+t=qx+fV ile tqx»vt+1-(1+%60)t. From the table, it is understood that to sell long term death benefit insurance with single premium is not logical in high inflation rate and government must not permitted single premium death insurance. Because of those bad situation, some of the people might say to increase interest rate. But we can not know the inflation rate of future. As a result we can say that to use high interest rate is not true if we consider the future, but we can use changeable interest rate. Interest rate can be changed according to the inflation rate or bank interest rate or investment rate, etc. Another way to avoid from the high inflation is to use profit share method in death benefit insurance like investment insurance. So face amounts can be increased by profit share. In table 1.5, you can see the increasing in face amount by the effect of profit share in death benefit insurance with single premium payment with assuming 100.000.000.-TL beginning face amount.-3- 1.2. INSTALLMENT PAYMENT 1.2.1. Installment Payment Factor ax;n installment payment factor in banking is; an = 1+v+v2+ +vn-1 1-vn (1.7) 1-v But in actuarial calculations also it is important whether insured person is alive or not at the time of each installment payment, so the installment factor in actuarial calculations is; 'x+1 'x+2 'x+n-1 ax;n = 1 + v* + v2 + *.. + v``1 * 0 -8) 'x 'x 'x Dx Dx+1 Dx+2 Dx+n.-= + + +... + (1.9) Dx Dx Dx Dx Nx`Nx+n Dx (1.10) Comparison between ax;n and an is in table 1.6. Since ax;n<an, so; A A ax;n an 1.2.2. Installments at Death Benefit Insurance If a person chooses installment payment, then an installment can be calculated by dividing sigle premium to the factor ax;n. Comparison of 10 year death benefit insurance with installment payment and yearly term insurance premiums can be seen in table 1.7.Although negative effects of inflation is not seen in installment payment, because of the fixed face amounts, long term insurance is not useful for people. Solutions, that was told in single premium payment, are also useful for installment payment to avoid melting of face amount from high inflation rate. These were, - Tariffs index to foreign exchange - Using profit share method for death benefit insurance tariffs - Increasing face amounts each year In table 1.8, you can see the change in face amounts when profit share method is used for installment payment. Since tariffs index to foreign exchange is not seen better for Turkish economy and profit share method is not enough benefit in installment payment, so the only solution is increasing face amounts. Formulas of single premium and installment factor will be changed for a fixed increasing rate. If we use notation `e` for fixed increasing rate, then, Cx Cx+1 Cx+n_f spx:n=1^- + (1+e)' +.... + (1+e)n_1« Dx Dx Dx Cx+t SPx:n= E(1+e)t. (1.11) ux Also premium will increase with the same increasing rate `e`, so; Dx Dx+1 Dx+n-1 aex:n =1* + (1+e)' + ~+ (1+e)n_1« Dx Dx Dx aex:n = S (l+e)t. (1.12) t-o D ux-5- An installment can be found by dividing single premium to aex:n. So premiums and face amount will increase with a rate `e` for each year. In table 1.9 you can see an example which is an increasing face amounts and premium with a rate 50%. Also you can compare it with yearly term insurance. 1.2.3. Effect of Technical Intesrestto Each Installment Effect of technical interest is not similar with banking operarions. The reason is using present value in calculation of single premium in actuarial calculations. First of all you take present value then divide by ax:n for installment. TABLE 1.1TABLE 1.2 <CSO 53-58)-7-8 56666666666666666666^66666666^566* in tu t- e 1066666665665g3 &WKW B^S CD 2 g Q o» «o N S10 O JO s Q i İTABLE i. 5 <CSO 53-58) TABLE 1.8 (CSO 53-58)10- 1 i D £/l Qi <o <D to cy **»-11 I I 2-12- 5: I 1 SI § S ğ jQ 5 Pg88S8g?889°-13- 2- LIFE BENEFIT INSURANCES Types of saving insurances (whether companies using different names) are; 1- Difere insurance 2- Endowment insurance 3- Saving insurances whose actuarial calculations are formed without using survival probability and we called `Bank Saving Insurance` in this thesis. 2.1. DIFERE INSURANCE In this type of saving insurance, insured person must be alive at the end of the period of insurance. If an insured person dies before the end of the period, he/she can not take anything. The net premium formula for a person at age x, to take 1TL face amount at the end of n year is; Dx+n SPx:n (2-1) Dx 'x+n =.vn (2.2) = nPx-vn <2-3> In table 2.1, it is possible to see net premiums for 1000 TL face amount and comparison with 1000»vn. For x <40 and n £15; 'x+n lx (2.4) so the values of SPx:n are very close to values of vn.-14- With a good profit share method, it is possible to destroy negative effect of low interest rate but disadventages of not taking anything before the end of the period deaths does not. Because of this, companies had started to use difere insurance with premium return. 2.1.1. Difere Insurance with Premium Return In this type of insurance, insured person can take face amount at the end of the period if he/she is alive, and he/she can take his/her gross premium if he/she dies in the time of the period. In table 2.2 and 2.3 it is possible to see the differences of premiums between difere insurance and difere insurance with premium return. Although premiums are very close as it be seen from the tables, benefits are very different for insured person. 2.2. ENDOWMENT INSURANCE It is very similar with difere insurance with premium return. Insured person can take face amount whether he is alive at the end of the period or dies in the period. For 1 TL face amount, net premium is; Mx-Mx+n Dx+n SPX;n = 1' +1' Dx Dx Mx`Mx+n + Dx+n = (2.5) Dx If installment payment is choosen then each installment is; Mx`Mx+n + Dx+n Dx YSPx:n = (2.6) ax:n Life and death benefit part of the net premium of endowment insurance can be seen in table 2.4.-15- As we said in the previous parts of the thesis, same solutions exist for protecting face amounts from high inflation rate. There were 1- Tariffs index to foreign exchange 2- Endowment insurance with profit share 3- Endowment insurance with increasing face amount. Since using foreign exchange is not acceptable for us, so two solutions remain. 2.2.1. Endowment Insurance with Increasing Face Amount In the previous sections we had found the formula (1.11) which was the net single premium of death benefit insurance with increasing face amount, it was; cx+t A-l 2)(1+e)t. -Uo D ux If insured person will be alive at the end of the period, company will give 1«(1+e)n`1 liras to the insured person, so net premium for life benefit part is, Dx+n (1+e)n-1. (2.7) Dx Since premium will also increase, so we must use aex:n, which was given at formula (1.12) for installment payment, so; Cx+t Dx+n ft- ı X(1 +e)t- +(1 +e)n`1 - *` Dx Dx SPex:n = (2.8) a x:n In table 2.5, you can can see the net premiums of endowment insurance with increasing rate 50% for different technical interest rates.-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^CONCLUTION The high level of life insurance in developed cuntries shows that it will reach to necessary importance in our country too. This can happen by the need and believing of necessity of life insurance by people. But because of the high level inflation and low technical interest, almost a lot of tariffs so far away from the need of people, therefore people don't give essential importance to life insurance. To come life insurance into consideration as attractive the maturty and indemnity must suitable in nowadays conditions. It is normal for people to disappoinment about to have maturity value in very small ratio about life insurance. Because of this in next periods the obligatory of state and insurance sector come as bigger. Life insurance has a great importance to let it on safe basement which warrant people's future life and forming funds to provide economy. It is not easy to act as a life insurer with known actuarial calculations in countries like have high level inflationrate. To raise technical interest will make companies in hard obligatory conditions and using changable technical interest will be impossible by actuarial side. `In nowadays Turkey, we can easly see that, companies direct to bank saving insurances to get rid of inflation effect. But if the improment in profit share application is not made, life insurance will come a bad position in the end of insurance period. One of the deficiency in pure death benefit insurances is not giving essential importance in our country life insurance companies. If the companies give essential importance to this insurances, they will take it's results. As aresult, to develop life insurance in our country, which have high inflation rate, they must; prepare new tariffs to get rid of inflation effect, give importance to death benefit insurance, invest to insured's money as soon as possible, and state must take some action in protecting to insured's saving by Insurance Supervisory Law item no 2,12 and 16.18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^18- in ıı o II s* in ıı ^ ? a a a ^ a ^_ a a. a a.? ^a a a jı « ? ?. p ? a ? r<ıPo£îfiör<<jr<3£îSSîSSfü3SiS3S3$3S53JS3f!3fî3P3 P5 r*5 P5 r*5 ` M ro Mi M M W f*) W Mi M Fq M MI ?o Fo ?o ?q m S^5S3^3Sg2S5aSBSSS??2RS S 5 S S` S S r- r- r- r- r- r- ?.. ? ? ? ? ?. m m ?. ? ? * a Ö Ç> O O CQ CQ ^ On m m CQ ^` tç C?J «Q *Q eo K 228saSSGSroSSSS«^BSSSSî in *-4 II az a. eti m ıı 2 2 2 222222!:d^^i2!222223n2gS t*) to f*j ro 1*0 to ro p*5 fo ro ı*o to to ro ro ro ro t*i ro (*`0 ro Po ro ro ro ro po ı*3 po f*> 1*0 to ro ro ro ro t** fo Po ro Po Po oj îu îu oj ? ?. a ? * 11 a ? * t» m 11 <§ ıı a a m a m m m tt ? m a a t ? j ? a S J * ^^ j! -fj ».. J» jp JJ >». SS88SSS;SSSS3SaSP£BSSffi2g g[eİBİe[eieiİgJJJII«Jl!Jli£i£iâiâSlâ^^-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^-16- As a result we can say that endowment insurance with increasing face amount and premium is not acceptable unless technical interest rate will greater then increasing rate. 2.2.2. Endowment Insurance with Profit Share Life part of endowment insurance net premium must be considered saving of insured person that is given to the company for safekeeping, so insurer must invest and get profit from this money. Again we will say that, assuming amounts of profit share as a single premium and finding new face amount is a good idea. in table 2.6 you can see endowment insurance with profit share for profit share rate of 60%. 2.3. BANK SAVING INSURANCES This type of insurance premiums (which is solt much more nowadays) has two parts. A little part of premium is for yearly term insurance and other part is for saving with 9% interest rate, if we ignore expences and commission. Since the second part of the premium is banking operation, we called it `bank saving insurances`. Bank saving insurance is similar with endowment insurance. In table 2.8 and 2.9 you can compare them for same expences. In table 2.8 only technical interest rate 9% is used, in table 2.9 60% profit share rate is considered. As it seen, whether life probability is not used in bank saving insurance, it is better than other type of insurance for purpose of saving.-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^-16- As a result we can say that endowment insurance with increasing face amount and premium is not acceptable unless technical interest rate will greater then increasing rate. 2.2.2. Endowment Insurance with Profit Share Life part of endowment insurance net premium must be considered saving of insured person that is given to the company for safekeeping, so insurer must invest and get profit from this money. Again we will say that, assuming amounts of profit share as a single premium and finding new face amount is a good idea. in table 2.6 you can see endowment insurance with profit share for profit share rate of 60%. 2.3. BANK SAVING INSURANCES This type of insurance premiums (which is solt much more nowadays) has two parts. A little part of premium is for yearly term insurance and other part is for saving with 9% interest rate, if we ignore expences and commission. Since the second part of the premium is banking operation, we called it `bank saving insurances`. Bank saving insurance is similar with endowment insurance. In table 2.8 and 2.9 you can compare them for same expences. In table 2.8 only technical interest rate 9% is used, in table 2.9 60% profit share rate is considered. As it seen, whether life probability is not used in bank saving insurance, it is better than other type of insurance for purpose of saving.-17 (S cu ffifflffiffi^§S§ssl§s^§§§^§SSSS § po po po po po po po po po po po po po po po po po i*5 po po po MI PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO PO m PO po po po ro po PO PO PO po PO PO PO po po po po po po po po po iK m m m m m m m m m m m m W ^ 05 m tt 2 a a a ao.&. ?*. ?**..«*? ?*.*. «*? «^.jt ?«* «*. -*..*..*.«?.«` -«r «^ sr *^ «^ -** «# pt:p?p^p.p?p?p?p?p?p~p<p?p.r?p?p?p.p?p?p?&)haib p^ p* p* p* p» p** p* p» p* p^ p* P* p*- p* p- p*» r*- p» p* p» p» p* p- s in S £ r3r3r3r3Qr2Q£2r2ri2 a CD CO CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD i£(flı£i^(flU)a]a)U)i£tfvoınır)inıntnınınının4>*t r- <p-4 *-4.-.» «-* <^* ^M *-f ^* v-f «-4 <v^ ^* ^4 w* i-« <-H <p-« *-« v4 *-4 v* *?* ^*.?-* CP* CP* CP> O^ 0** OTi 0^ 0^ O`* CP) O*^ D^i O^ O** O** O** CP> D^ 0** 0^ O^ 0** 0* o^-16- As a result we can say that endowment insurance with increasing face amount and premium is not acceptable unless technical interest rate will greater then increasing rate. 2.2.2. Endowment Insurance with Profit Share Life part of endowment insurance net premium must be considered saving of insured person that is given to the company for safekeeping, so insurer must invest and get profit from this money. Again we will say that, assuming amounts of profit share as a single premium and finding new face amount is a good idea. in table 2.6 you can see endowment insurance with profit share for profit share rate of 60%. 2.3. BANK SAVING INSURANCES This type of insurance premiums (which is solt much more nowadays) has two parts. A little part of premium is for yearly term insurance and other part is for saving with 9% interest rate, if we ignore expences and commission. Since the second part of the premium is banking operation, we called it `bank saving insurances`. Bank saving insurance is similar with endowment insurance. In table 2.8 and 2.9 you can compare them for same expences. In table 2.8 only technical interest rate 9% is used, in table 2.9 60% profit share rate is considered. As it seen, whether life probability is not used in bank saving insurance, it is better than other type of insurance for purpose of saving.