Nature of Life Insurance
Life Insurance is concerned with the following:
Life Insurance is concerned with the following:
- Loss of earning capacity
- Loss of financial support for dependents
- Loss of financial inflow for others such as creditors and business associates.
Human Life Value of Man
Human life has an economic value.
It is defined as the capitalized monetary worth of the earning capacity of an individual devoted to the support of his family during his working lifetime.
Why Buy Insurance?
The need for gradual accumulation of earnings.
To replace income loss when earning power ceases either through death, disability or old age.
3 Hazards of Life
- Old Age- consist of age nearing or surpassing the life expectancy of human beings, and thus the end of human life cycle.
- Disability- is the consequence of an impairment that may be physical,cognitive,mental,sensory,emotional,development or some combination of these.
- Premature Death- are deaths that occur before a person reaches an expected age, for instance, age 80. Many of these deaths are considered to be preventable.
- Family Protection
- Income Replacement
- Clean-up Fund
- Guaranteed Savings
- Retirement Fund
- Education Fund
- Mortgage Redemption
- Estate Conservation
- Investment