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Issue:

Miscellaneous

 

Written by:

Robert V

 

Date added:

April 18, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 428

 

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4949 times

 

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Essay content:

Under the terms of a life insurance contract, the insurer promises to pay a certain amount of money (death benefit) to someone you choose (a beneficiary) when you die, in exchange for your premium payments. Do you need life insurance? The need for life insurance is simple; you should consider life insurance if anyone depends on your income...
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Essentially, you transfer the risk (loss of your income) to the insurer by paying a fee, or "premium," to the insurer. The insurer, with a large capital base and expertise in risk selection and management, is better able to accept this risk than any single individual would be. This risk transfer may be helpful in both personal and business situations...
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