Essay sample - Life Insurance

Free
Life Insurance Essay example
Undergraduate
Essay
Finance & Accounting
Pages 4 (1004 words)
Download 0
This work is written as a life story and it shows how important the life insurance is, because death is unpredictable, and though we wish it away, people should stay prepared by transferring the associated risk to insurance companies. …

Introduction

So many ways exist in which to offer good parenting and my parents did not fail in this responsibility. Memories of my childhood are filled with admiration, remembering how my father worked hard to give us a comfortable life.
As a family, we advise every parent to take up life insurance. Insurance companies offer quotations for this insurance cover free of charge, and could be as little as a monthly premium of $50 for a sum assured of up to $1 million (Koller 23). It is a sacrifice worth making in the long run. In making these quotations, health and age determine the premium. With younger people having longer periods to make premium payments according to Kelly (147), it would be advisable to take up the earliest opportunity possible to take up life insurance as the premium payable would be lesser. One could take up term and/or whole life insurance policy. The US Department of Veteran Affairs differentiates between the two with the former taken for given period of time before maturity while the latter matures only on death of the principal insured. Depending on one’s need, it would be advisable to take up both insurance policies. This is a risk avoidance approach where the risk of a suffering family following the parent’s demise is transferred to the insurance company (Stephens 122). This is because death is unpredictable, and though we wish it away, people should stay prepared by transferring the associated risk to insurance companies. Even though life insurance did not get us our father back, it made sure that the family income was not cut thus ensured that our lives continued normally. ...
Download paper
Not exactly what you need?

Related papers

The Questionary: Insurance and Pensions. ASU, MPPI
Bonus can be classified into two types namely; annual bonus also known as regular bonus and final bonus that is also reefed to as the terminal bonus. By investing in this kind of policies, I will either receive payment in lump-sum at a specified future date or will receive an annual income with the possibility of the investment growing with time. With-profits investment can be obtain through…
17 pages (4267 words)
Insurance Industry in Australia and Acts of Parliament
In essence, the insurance industry in Australia offers insurance services to Australians in three major categories, which are: health insurance, life insurance and general insurance. Moreover, the insurance industry in Australia falls under the financial services sector. The above three categories of insurance are regulated by different acts of Parliament. In accordance with Australian pieces of…
6 pages (1506 words)
Insurance Research Paper about the Real Estate Development Industry
This paper stresses that the present financial crisis may be regarded as a banking crisis, but there are hardly any possibilities of the solvency of the insurance industry. However to a certain extant the insurance industry on a whole has been affected by the ongoing financial crisis. To be more specific the insurance companies which are mainly involved in the real estate insurance also got hugely…
9 pages (2259 words)
Long-Term Investmet Strategy
A normal life insurance policy functions as a financial coverage for a person and his/her family in case of the person’s demise. Apart from that, a person can also enjoy a number of other returns, which the person would get after the contract matures. These profits are paid in a structured settlement or slabs (Oviatt 19). Life insurance is an agreement between both an insurer and an insured…
4 pages (1004 words)
Insurance Claims Paper
Today, the firms that operate in the insurance industry have to face an important challenge: the increase of claims is combined with the limitation of demand for insurance contracts; this phenomenon is probably related to the strong financial pressures in markets worldwide. This paper focuses on the claims settlement process. Emphasis is given to the recent advances that have resulted to the…
4 pages (1004 words)
Life Insurance
, n.d.). The need for life insurance arises to obtain a form of financial protection against accidental incidents or deaths for which individuals are not always prepared. If insurance is ready, through payments of the premiums, then in cases of accidental deaths or incidents, individuals can be insured. Life insurances provide benefits for deaths or critical illnesses, for financial interests of…
10 pages (2510 words)
Risk Allocation for an Insurance Company
The level of risk of an insurance company is measured by the probability to pay out under an insurance policy that they have issued. Identification of risk factors is very important for an insurance company. Actuary studies the insurance payout history and also identifies the risk factor for each and every insurance policy due to which the insurance company has to pay out. For example: - people…
4 pages (1004 words)