3. Translate the sentences into English:

1. Страхование на срок во многом схоже со срочным банковским депозитом с фиксированным процентом.

1. Аналогично банкам, страховые компании предлагают гарантированные выплаты и являются закрытыми организациями, поскольку клиент не знает, как используются его средства.

1. Страховой полис может защитить нас в случае финансовых потерь, в пределах, не превышающих страховочную сумму.

1. Компании, занимающиеся страхованием жизни, гарантируют доход своему клиенту в том случае, если последний потерял трудоспособность в результате болезни.

1. Основным принципом любого типа страхования является накопление средств для дальнейшей компенсации возможных убытков.

1. Под страхованием-вкладом понимается такой тип договора-страхования, при котором сумма страхования подлежит выплате в случае, если смерть застрахованного лица наступила в течение срока, обозначенного в контракте.

1. Оказывая услуги по управлению портфелем инвестиций, приобретая долгосрочные закладные облигации и государственные ценные бумаги, американские компании по страхованию жизни во многом копируют деятельность сберегательных институтов.

1. Полис пожизненного страхования (whole of the life policy) распространяется не на определенный срок, а на всю оставшуюся жизнь страхуемого лица.

Unit 10 pension funds

In performing the financial intermediation function of asset transformation, pension funds provide the public with another kind of protection - income payments on retirement. Employers, unions, or private individuals can set up pension plans, which acquire funds through contributions paid in by the plan’s participants. Although the purpose of all pension plans is the same, they can differ in a number of attributes. First is the vesting of the plan, that is, the length of time that a person must be enrolled in the pension plan (by being a member of a union or an employee of a company) before being entitled to receive benefits. Typically, firms require that an employee work ten years for the company before he or she is vested and can receive pension benefits; if the employee leaves the firm before the ten years are up, either by quitting or being fired, all rights to benefits are lost.

A second characteristic is the method by which payments are made: if the benefits are determined by the contributions into the plan and their earning, the pension is a defined contribution plan; if future income payment (benefits) are set in advance, the pension is a defined benefit’s plan.

A defined benefit’s plan is fully funded if the contributions into the plan and their earnings over the years are sufficient to pay out the defined benefits when they come due. If the contributions and earnings are not sufficient, then the plan is underfunded.

Annuities

In order to boost his or her income an individual with a sizable amount of capital to invest could take out an annuity with an assurance company. A lump sum payment will provide the annuitant with a regular income of a fixed amount or, possibly, an amount which increases by an agreed percentage each year to allow for inflation, and these payments go on until date of death. A husband and wife may take out a joint annuity which ensures that should one of them die the partner will continue to receive the payments until he or she dies.

The main point about an annuity is that the capital sum becomes the property of the assurance company - the annuity dies with the annuitant. The amount of the annuity payments will therefore be based on the expectation of life of the annuitant and the younger he is at the time that the annuity is taken out the lower will be the annuity payments, because the assurance company can expect that by the law of averages it will be paying out for a longer period of time. For an old person, especially one with no family, an annuity is likely to produce a much better return than most other forms of investment and with some exemption from income tax, but the capital invested will be lost to his or her estate. There are some types of annuity which provide for a return of some of the capital sum invested should the annuitant die within a prescribed short period of time after taking out the annuity.

A deferred annuity is one which does not commence until the annuitant reaches a particular age (may be retirement age) and the assurance company will have the use of the capital sum until that time is reached. Because of this the amount it is willing to pay as an annuity is higher than it would otherwise be.