№ 4/2023

Fìnansi Ukr. 2023 (4): 76–91https://doi.org/10.33763/finukr2023.04.076

INSURANCE

ABERNIKHINA Iryna ¹

¹Ukrainian State University of Science and Technologies
OrcID ID : https://orcid.org/0000-0003-0692-1276

Life insurance as supplemental social security

Introduction. Life insurance arises from the need for individuals to provide financial protection and security for themselves and their families. It can be used as a tool for accumulating financial resources and as a means of pension planning. Life insurance in Ukraine remains less developed compared to other European countries due to low confidence in insurance companies, a difficult economic situation in the country, and the lack of proper legislative regulation in this area of insurance.
Problem Statement. The increasing proportion of elderly people, according to demographic projections, determines the corresponding requirements for reforming primarily the social security sphere, and life insurance could become one of the effective ways of supplemental social security.
Purpose. To highlight the potentialities of using life insurance as supplemental social security.
Methods. We used general scientific and special methods, i.e. analysis, synthesis, grouping, description, comparison, theoretical generalization, and abstract-logical methods.
Results. It is emphasized that life insurance inherently aims at additional protection and support of the financial and social welfare of the population. It is noted that in most developed countries, life insurance is integrated into the social security system. It is proved that life insurance in Ukraine is not a mandatory part of the social security system, but is available on a voluntary basis through insurance companies. The number of insured citizens and life insurance contracts concluded by life insurers in Ukraine during the last 5 years has been analyzed. Research of the voluntary life insurance market in Ukraine has been conducted and an overview of the programs offered by insurance companies according to the classes of insurance has been made.
Conclusions. Life insurance as an opportunity for supplemental social security has a significant potential in our country. However, the impact of some negative factors, in particular, military aggression, and an underdeveloped stock market hinders the development of the voluntary life insurance market and the possibility to expand the share of the insured population of our country. Taking into account statistics, which are aggravated by the military situation in the country, there is a need for clearly defined legislative conditions for the use of life insurance as a supplemental method of social security.

Keywords:life insurance, insurance companies, insurance programs, additional protection

JEL: G20, G22, G52

Abernikhina I. . Life insurance as supplemental social security / I. Abernikhina // Фінанси України. - 2023. - № 4. - C. 76-91.

Article original in Ukrainian (pp. 76 - 91)

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