LIFE INSURANCE - CIN 2120

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CHAPTER 1: INTRODUCTION TO LIFE INSURANCE •In any activity of life there is a possibility that an undesired event may occur and as a result pecuniary ( loss may arise). •In adventures by sea t... he ship may fail to make to the port (remember Titanic!) or the cargo may be damaged or lost •In the adventure of life itself, the life may fail and death may occur, thus causing suffering to dependents Death comes to all sooner or later, and it is the only truth in this world. The rest as they say is all illusion So if death is the only truth, then why do we ignore the implications of the event. •Life insurance is therefore the most important of all forms of insurance as it’s significance pales the other forms of not just insurance but also all investment instruments. •The theory of insurance, in general terms, may be expressed to mean that the good fortune of the many compensates for the misfortune of the few. •The consequences of such misfortunes cannot be in many instances borne by the individual, and so the insurance company is prepared to shoulder the burden of these consequences in exchange for an assessed payment for the risk undertaken [Show More]

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