Introduction To Life Insurance

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Introduction to Life Insurance
AN OVERVIEW
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Objective of this presentation

To provide a brief knowledge of : Life Insurance Industry Meeting Needs of individuals and business Introduction to Risk & Insurance Underwriting Pricing Life Insurance Term Life Insurance Permanent Life Insurance Group Life & Annuities Supplementary Benefits Policy Beneficiaries Life Insurance Policy Provisions Policy Proceeds ( Claims, Dividends etc.)
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Chapters
Life Insurance Industry Meeting Needs of individuals and business Introduction to Risk & Insurance Underwriting Pricing Life Insurance Term Life Insurance Permanent Life Insurance Group Life & Annuities Supplementary Benefits Policy Beneficiaries Life Insurance Policy Provisions Policy Proceeds ( Claims, Dividends etc.)
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Life Insurance Industry

Insurance Companies as Business Organizations
Each business organization is structured in one of three ways : Sole Proprietorship The Owner reaps all profits, & Personally Responsible for all the debts of the business Partnership The Partners reaps all profits & are responsible Partnership dissolves if the partner dies Corporation A legal entity, separate and distinct from the people who own it Continues beyond the death of any or all of it owners
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Laws in America and Canada require Insurance Companies to operate as Corporation only.
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Type of Insurance Company Organisation
Stock Insurance Companies Stock holders are the owner Operating profits are distributed as dividend Mutual Insurance Companies Owned by the policyowners Operating profits are distributed as policy dividend Mutualization & Demutualization Occurs when a stock insurer converts to a mutual insurer and vice a versa.
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Type of Insurance Company Organisation ( Cont..)
Fraternity Benefit Societies Society shares a common ethnic, religious, or vocational background Insurance benefits to its members must have a representative form of government Operate thru a lodge system, where lodge members own insurance
Banks
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Organizational Operations
Home Office or head office Regional Office Field Office or branch office or agency office
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Meeting Needs of Individual and Business

Personal Needs met by Life Insurance Products Business Needs met by Life Insurance Products Life Insurance as an Employee Benefit
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Personal needs met by Life Insurance Companies
Estate Plan
Final Expenses and Estate Planning
Dependents Support
Education Retirement Costs Income

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Business needs met by Life Insurance Products
A business generally purchase life Insurance products to ensure that the business continues in the event of the death of an owner a partner a shareholder, or, a key person
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Buy Sell Agreement
In United States, if an individual dies, all the assets and liabilities become part of his/her estate. An executor or administrator is assigned to settle the deceaseds estate The administrator then distributes the remaining property to the deceased persons heirs. Many a times, the administrator may have to sell the assets for a price much less than if they could be sold in a more leisurely manner.
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Buy Sell Agreement ( Cont.)
A buy-sell agreement is an agreement in which one party agrees to purchase the financial interest that a second party has in a business following the second partys death, and the second party agrees to direct his estate to sell his interest in the business to the purchasing party. Available for any closely held business Sole Proprietorship Buy-sell Agreement Partnership Buy-sell Agreement Closely held corporation Buy-sell Agreement
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Sole Proprietorship Buy-sell Agreement
Employee purchase an Insurance policy on the life of proprietor Employee owns the policy, pays the premium and is the named beneficiary.
EMPLOYE E
Pays the cost of an insurance policy on the life of the proprietor
SOLE PROPRIETOR
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Partnership & Corporation Buy-sell Agreement
1. Cross-Purchase Method
PARTNER B PARTNER A PARTNER C
2. Entity Method
BUSINESS
Each partner purchases a life insurance policy on the life of each other partner
The partnership purchases a life insurance policy of the life of each partner
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Key Person Life Insurance
BUSINESS
Purchases, owns, and is the beneficiary of a life insurance policy on the life of
A person whose death would cause financial loss to the business

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Life Insurance as an Employee Benefit
Split Dollar Life Insurance Plan The employer and employee share the cost of an insurance policy on the life of the employee. Employee is given the right to name the policy beneficiary Deferred Compensation Plan
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Introduction to Risk & Insurance

The Concept of Risk
Speculative Risk :- Gain, Loss or no-loss Pure Risk :- Loss or no-loss The purpose of Insurance is to Compensate for financial loss and not to provide an opportunity for financial gain.
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Risk Management
Avoiding Risk - Refrain from doing something
No air travel
Controlling Risk - Taking preventive actions

Install Smoke detectors
Accepting Risk - Ready to face the implications Transferring Risk - Transfer the risk to other parties
Property Damage Risk Liability Risk Personal Risk
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Characteristics of Insurable Risks
The Loss must occur by chance. The loss must be definite, in terms of time and amount. The loss must be significant. The loss rate must be predictable.
The law of large number ( Refer next slide )
The loss must not be catastrophic to the insurer.
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The Law of Large Number
The more times we observe an event ...
The more likely it is that our observed results will approximate the true probability that the event will occur
COIN TOSSED 1,000 TIMES
HEADS 50%
TAILS 50%
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Concept of Insurable Interest
If the policyowner
Is likely to benefit if the insured continues to live AND Is likely to suffer loss or detriment if the insured dies then
The policyowner has an insurable interest in the insured
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Insurable Interest & Beneficiaries
Most insurance companies require that the beneficiary have an insurable interest in the life of the insured when a policy is issued
Must have an insurable interest in

BENEFICIARY INSURED
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Insurable Interest & Family Members
Certain family relationships are deemed by law to create insurable interest
Spouse/Spouse
Parent/Child
Brother/Sister
Grandparent/ Grandchild
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Demonstrating Insurable Interest
Before policy is issued:
After policy is in force:
Life Policy
INSURANCE AGENT
Insurable interest must be present
Insurable interest is not relevant

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Definition
What
Underwriting or selection of risks, is an insurance function that is responsible for assessing and classifying the degree of risk a proposed insured represents.
Why
To be financially healthy and able to pay contractual benefits, every insurer must have a way of measuring the level of risk each proposed insured presents so it can charge a premium rate that is adequate to pay policy benefits.
Who
An insurers employee who evaluates risks, accepts or declines applications and determine the appropriate premium, is known as Underwriter.
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Antiselection
An important concept which forces people to seek insurance
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Organisation of Underwriting
Chief Underwriter
The highest ranking underwriter in an insurance company
Medical Underwriting Director

In-charge of medical experts who provide medical information and guidance
Underwriting Executives and Supervisors

Each of whom is responsible for one of more individual or group insurance products
Underwriters
Technically qualified professionals who assess the risks
Agents also known as field underwriters

Gather initial information and screen applicants
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Underwriting Objective
Effective underwriting ensures that the insurance policies are :-
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Individual Life Insurance Underwriting

Risk Classes
Preferred Class Standard Class Substandard Class also called Special or Impaired risk Declined Class
LIKELIHOOD OF LOSS
Less than Average
PREFERRED CLASS
Averag e
STANDARD CLASS
SUBSTANDARD CLASS
Greater than Average
Too Great Uninsurabl to be Insured e

DECLINED CLASS
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Risk Assessment Factors
Medical Risk Factors Personal Risk Factors Financial Risk Factors
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Medical Risk Factors
Build - Persons body shape including height and weight Personal Medical History Family Medical History - Hereditary disease
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Personal Risk Factors
Occupation - Mining industry Tobacco Use Alcohol and substance Abuse - Abuse of alcohol or drug Moral Hazard - Attempt to conceal or misrepresent information Avocation and hobbies - Skydiving, hang gliding, racing etc. Aviation activities - Pilots International Residence - obtaining accurate information can be difficult Driving History - Drivers with risky driving habits Military Status - Insurance only when they are not in military operations.
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Financial Risk Factors
Insurable Interest The proposed beneficiary has an insurable interest in the proposed insureds life Insurable interest is required only at the time of policy issue, but not after the policy is in force.
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Group Life Insurance Underwriting

Risk Assessment Factors
Proposed Coverage
Eligibility Requirements - Only full time permanent employees Benefit Levels - Affordable for employer and reasonable for employees Administration Method - Willingness and ability of a group policyholder to support the administration of the plan Mode of Commission payment - Agents commission be spread out over a number of years.
Reason for the groups existence - Usually for employees, not for groups formed solely for the purpose of group life insurance
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Risk Assessment Factors ( Cont..)
Size of the group - Larger groups preferred Nature of the groups business - Potentials hazards and economics prospects of the industry in which the group operates Geographic Location of the Group - regions can differ in natural disasters, quality of living and economic conditions, availability of health care. Stability of the group - steady flow of younger members Age and Sex distribution of Group Members - group of younger and female members preferred
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Risk Assessment Factors ( Cont..)
Level of Participation - minimum participation requirement helps prevent Antiselection ( Contributory Plan). Classes of Employees - Classification by occupation, salary, length of service etc. Expected Persistency - Policy for longer duration is preferred Prior Experience - Group insurance information for past 3 years, is analyzed.
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Factors considered in Renewal business
Claim Experience - If the claims were less than expected, the renewal premium may go down and vice a versa. Level of Participation - For contributory plans, the level of employee participation must meet the required minimum.
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Regulatory Requirements and Underwriting

Unfair Discrimination
Underwriting decision cannot be based on insureds sex, race, marital status, national origin, or religion. Only unfair discrimination is prohibited.
Consumer Privacy
Fair Credit Reporting Act ( FCRA) - Applicant be notified that
a consumer report will be used. Nature and scope of the investigation if any adverse decision is taken based on that information
NAIC Model Privacy Act

Establishes standards for the collection, use and disclosure of information gathered
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The Underwriting Process

Application Received Underwriter Reviews application Need additional info Obtain & review additional info Send application with substandard rating to policy issue Policy issue sends Policy to Agent Agent offers policy to applicant Standard Risk Insurable at sub-std risk
Approve Application Application sent to policy issue Policy issue sends Policy to Agent or Policyonwner
Decline Application
Policy in force
Applicant accepts rated policy
No Policy in force
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Gathering Additional Information

Additional Medical Information Additional Personal Information Additional Financial Information
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Additional Medical Information
Attending Physicians Statement ( APS ) Report by a physician who has treated or currently treating the proposed insured. Specialized Medical Questionnaire A specialized medical questionnaire is requested from the proposed insureds attending physician MIB Report MIB members may request information to find out whether proposed insured has any significant impairments or other risk, not disclosed by him. Laboratory Tests May also order such tests if they are deemed necessary to make a sound underwriting decision.
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Additional Personal Information
Motor Vehicle Record Persons driving history including traffic violations, arrests and convictions for driving related incidents. Inspection Report Information collected from a consumer reporting agency, which can be on insureds personal life, occupation, hobbies, health and financial status. Personal Questionnaires A specialized personal questionnaire is requested from the proposed insured
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Additional Financial Information
Inspection Report Information collected from a consumer reporting agency, which can be on insureds financial status including investments, income, assets and liabilities. Credit Report Credit History from Credit Reporting agency
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Making an Underwriting Decision

Approve the Coverage as applied for Rate the Application
By modifying the coverage or charging a higher premium
Decline the Application
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Pricing Life Insurance

Methods of Funding Life Insurance
Mutual Benefit Method - Post-death assessment
Problems in collecting money size of group become smaller each members cost increases each year
Assessment Method - Annual assessment

Anticipated death claims and administrative expenses
Legal Reserve System

Death benefit should be specified Money should be collected in advance Premium should be related to the risk
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Premium Rate Calculations
Factors to be considered : Rate of Mortality Investment earnings Expenses ( also known as loading )
Premium = Cost of Insurance + Expenses - Investment Earnings
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The 1980 Commissioners Standard Ordinary (CSO) Mortality Table Male
AGE 0 1 45 46 98 99 Number Living 10,000,000 9,958,200 9,210,289 9,168,382 31,450 10,757 Number Dying 41,800 10,655 41,907 45,108 20,693 10,757 Mortality Rate per 1000 4.18 1.07 4.55 4.92 657.98 1,000.00 AGE 0 1 45 46 98 99
Female
Number Living 10,000,000 9,971,100 9,409,244 9,375,747 89,200 30,698 Number Dying 28,900 8,675 33,497 35628 58,502 30,698 Mortality Rate per 1000 2.89 0.87 3.56 3.80 655.85 1,000.00
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Level Premium Pricing System
It allows the purchaser to pay the same premium amount each year the policy is in force. This pricing system is widely used for whole life, term life covering more than one year and endowment insurance
Level Premium System

$1,500
Premium Amount
$1,000 $500 1 5
Years Policy is in Force
10
15
20
25
30
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Policy Dividend
Participating Policy also known as Par Policy
the policyowner shares the divisible surplus of Insurance company.
Non-participating Policy also known as Non-par Policy

the policyowner does not share in the insurers surplus.
Insurers Divisible Surplus
Policy Dividend
Policy Dividend
POLICY OWNER
POLICY OWNER
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Life Insurance Reserve
Policy Reserve - To pay due policy benefits
Net amount at risk = Face Value - Policy Reserve
Contingency Reserve - For unusual conditions that may occur
NET AMOUNT AT RISK

POLICY RESERVE
POLICY FACE AMOUNT
POLICY RESERVE
NET AMOUNT AT RISK

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Type of Insurance
TERM LIFE INSURANCE PERMANENT LIFE INSURANCE ENDOWMENT
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Term Life Insurance

Characteristics of Term Life Insurance Product
Coverage for a specified period of time The policy benefits are payable only if, the insured dies during the specified period, and the policy is in force when the insured dies.
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Term Life Insurance

Plans of Term Life Insurance Coverage
Level Term Life Insurance Decreasing Term Life Insurance Mortgage Redemption Insurance Credit Life Insurance Family Income Insurance Increasing Term Life Insurance
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Term Life Insurance

Renewable Term Life Insurance
Renewal Provision
Allows policyowner to renew the policy at the end of the term of coverage, without providing evidence of insurability
Yearly Renewable Term (YRT) Insurance

(1)
One-Year Term Life Insurance Policy Life Insurance Policy
(2)
Term Insurance Rider
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Term Life Insurance

Convertible Term Life Insurance
Conversion Privilege
Term Life Insurance Policy Permanent Life Insurance Policy
No evidence of insurability required

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Term Life Insurance

Type of Conversion
Attained Age Conversion
Original Age Conversion
Age of insured when policy was purchased
Age of insured when policy was converted
Age of insured when policy was purchased
Age of insured when policy was converted
Renewal premium is based on this age
Renewal premium is based on this age

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Permanent Life Insurance

Two Primary Distinct Characteristics
Permanent life insurance products offer lifetime coverage Permanent life insurance products provide insurance coverage and contain a saving element i.e. It builds a cash value.
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Traditional Whole Life Insurance
Policy Purchased at Age 45

$150,000
Death Benefit
$100,000 $75,000 45 50 60 70 80 90 100 or death
Insureds Age
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Classification of Whole Life Policies
ContinuousPremium Policies
Premiums payable until the insureds death, cash value at the end of 3rd year
Date of policy purchase Insureds death
Limited Payment Policies

Premiums payable until stated period expires, cash value at the end of 1st year
Date of policy purchase End of specified period
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Classification of Whole Life Policies (Cont.)
Single Premium Policy
Single premium payment
Results in large cash value immediately available

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Other type of Whole Life Policies : Modified Whole Life Insurance - Modified Premium or Modified Coverage Joint Whole Life Insurance as first-to-die life insurance Last Survivor Life Insurance as second-to-die life insurance Family Policies coverage on the insureds spouse and children Monthly Debit Ordinary Policy Monthly premium & small face amount Pre-Need Funeral Insurance Funeral homes as policy beneficiary
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A Newer Generation of Permanent Products
Universal Life Insurance
Flexible Premiums
LARGER SMALLER
Flexible Face Amounts

MORE
Unbundled Pricing Factors

1. Mortality Charges 2. Interest 3. Expenses
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$100,000 Life Insurance Policy
LESS

Unbundled Pricing Factors
Mortality Charges
Stated maximum amount May be less if mortality experience is favorable
Interest
May be higher if economic conditions warrant Stated minimum interest rate
Expenses
Each expense charge is listed in policy
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Flexible Face Amount
Option A Plan
Death benefit
Life Policy
Policy face amount
Option B Plan
Death benefit
Life Policy
Policy face amount Cash Value
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Flexible Premiums - Policyowner determines how much to pay
INITIAL AND RENEWAL PREMIUMS
Minimum amount Policyowner

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How a universal life policy operates
Pre miu ms
s tere In
ly nth Mo
es arg Ch
CASH VALUE
Oth loa er ch ns, arg with es, dra wa ls
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Regulation of Universal Life Policies A certain percentage of the policys face amount
Section 7702 Corridor Surrender Charges Periodic Reports
<
CASH VALUE
If policy includes surrender charges, regulators may require use of two separate terms to describe (1) cash value and (2) cash surrender value Insurers send each policyowner an annual, semiannual, or quarterly report giving the policys current values and benefits
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Other Advanced whole Life Products
Adjustable Life Insurance Indeterminate Premium Life Insurance - A maximum guaranteed premium rate and a lower premium rate Interest-Sensitive Whole Life Insurance - Apart from flexible premium cash value can also be greater than the guaranteed Variable Life Insurance - Separate Investment Account Variable Universal Life Insurance - Combination of variable and universal life insurance
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Endowment Life Insurance

Endowment insurance provides a specified benefit amount whether the insured lives to the end of the term of coverage or dies during that term. The maturity date is reached either
at the end of the stated term, or when the insured reaches a specified age.
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Group Life Insurance

Group Insurance Contract
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Type of Group Insurance Plan
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Group Insurance Underwriting
Group Insurance differs significantly from individual insurance in the area of underwriting. Group Insurance underwriting generally focuses on the characteristics of the group and does not usually require individuals to provide the evidence of insurability. Objective is similar to determine whether the group presents an average risk. Group underwriter also seeks to prevent antiselection and to ensure that the administrative costs are as low as possible.
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Group Underwriting Considerations
Reason for the groups existence : The group must have been formed for a reason other than to obtain insurance. The eligible groups are
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Reason for the groups existence : The eligible groups (Cont.)
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Size of the group
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Flow of new members into the group
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Stability of the Group
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Activities of the Group
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Eligibility Requirements
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Group Insurance Premium

The insurer
establishes group premium rates on a case-by-case basis determines the cost of providing coverage determines the cost of plan administration recalculates a groups rate every year
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Group Insurance Premium

Premium Rates
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Termination Provision
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Annuity
Definition
The term Annuity means a contract under which one party - the insurer promises to make a series of periodic payments in exchange for a premium or a series of premiums. Does not cover life insurance
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Classification of Annuities
How Annuities are purchased
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When benefit payments begin
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When benefit payments end
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How Annuity values are guaranteed or variable
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Annuity
Annuity Contract Provisions
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Supplementary Disability Benefits

Waiver of premium for disability benefit
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Waiver of premium for PAYOR benefit
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Disability Income Benefit
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Accident Benefits
Accidental Death Benefit
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Accident Benefits
Dismember Benefit
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Accelerated Death Benefits

Terminal Illness Benefit
A partial death benefit payment made to a policyowner if the insured has a terminal illness and 12 months or less to live
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Dread Disease Benefit
A partial death benefit payment made to a policyowner if the insured suffers from one of several specified diseases such as : Life-threatening Cancer Aids Coronary bypass surgery etc.
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Long Term Care Benefit
A monthly benefit paid to a policyowner if the insured requires constant care for a medical condition and is unable to perform several activities of daily living
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Other Benefits
Benefits for additional Insureds
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Life Insurance Policy Beneficiaries

Who can be a beneficiary
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Types of Beneficiaries
Primary Beneficiary He/She is the party designated to receive the policy proceeds following the death of the insured. If more than one primary beneficiary, the policyowners indicates how the same is to be distributed. If no instructions from policyowner, the proceeds are divided evenly among the primary beneficiaries. In order to receive policy proceeds, the primary beneficiary must survive the insured.
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Contingent Beneficiary He/she will receive the policy proceeds if all primary beneficiaries should die before the insured. The policy owner can name any number of contingent beneficiaries and may decide how the proceeds are to be divided among the contingent beneficiaries.
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No Surviving Beneficiary If no beneficiary has been named or none of the named beneficiaries is living when the insured dies, then the policy proceeds are paid to the policy owner, if the policy owner is living. If the policy owner is deceased, then the proceeds are paid to the policy owners estate.
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General rule for common disaster
If the insured and the beneficiary die at the same time or under circumstances that make it impossible to determine which of them died first, then policy proceeds are payable as if the insured survived the beneficiary. Example : Mohan and his wife, Radha died in an airplane crash and the evidence did not show which of them died first. Mohan owned an insurance policy in which Radha was the primary beneficiary and Mohans mother was the contingent beneficiary, Radha also owned an insurance policy in which Mohan was the primary beneficiary and Radhas father was the contingent beneficiary. Although Radhas father survived her, Mohans mother died several years before the crash.
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Analysis of the case study
Mohans Policy : The insured, Mohan, is deemed to have survived the primary beneficiary, Radha. Thus, the policy proceeds are payable to the contingent beneficiary, if she survived the insured. Because Mohans mother predeceased him, the policy proceeds are payable to Mohans estate. Radhas Policy : The insured, Radha, is deemed to have survived the primary beneficiary, Mohan. Thus, the policy proceeds are payable to the contingent beneficiary, if he survived the insured. Because Radhas father survived her, the policy proceeds are payable to him.
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Right of Revocation
Revocable Beneficiary A beneficiary designation is said to be revocable if the policy owner has the unrestricted right to change the beneficiary during the life of the insured. Irrevocable Beneficiary If the policy owner has the right to change the beneficiary only after obtaining the beneficiarys consent, then the designation is said to be irrevocable.
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Life Insurance Policy Provisions

Standard Policy Provisions
Free-look Provisions : Allows policy owner to examine the policy
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Entire Contract Provisions This provision defines the documents that constitute the contract between the insurance company and the owner of the insurance policy. This provision prevents oral statements from affecting the terms of the policy and prevents controversies from developing regarding the terms of the contractual agreement.
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Incontestability Provisions : usually 2 years for material misrepresentation
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Grace Period Provision - Specifies the length of time within which a renewal premium may be paid without penalty, usually 30 days
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Policy Loans : Grants a policy owner the right to borrow money from the insurer
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Policy Withdrawals : In universal life insurance policies, permits the policy owner to withdraw funds
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Re-instatement Provisions : Describes conditions that the policy owner must meet to reinstate a lapsed policy
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Mis-statement of age or sex provision : Describes how the insurer will adjust the policy benefit if the insurers age or sex is incorrectly stated
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Non-forfeiture Benefits :
Available to a policy owner whose policy lapses but still contains a cash value
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Non-forfeiture Benefits
Cash Surrender Value
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Reduced Paid-up Insurance
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Extended Term Insurance
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Automatic Non-forfeiture Benefit : Become effective automatically when the insured has not paid a renewal premium by the end of the grace period and has not elected another non-forfeiture option
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Life Insurance Policy Exclusions
Suicide Exclusion Clause
War Exclusion Clause Aviation Exclusion Clause
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Life Insurance Policy Proceeds

Policy Dividend Options
Methods of receiving policy dividends
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Cash Dividend
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Premium Reduction
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Accumulation at Interest
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Paid up Additional Insurance
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Additional Term Insurance : also called the fifth dividend option
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Processing Life Insurance Claims
Claimant must provide two documents
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Claim Examination Process
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Status of Policy The policy must be in force when the insured died. For example, a term life insurance policy may have reached the end of its term and expired. The claim examiner must verify that the policy did not terminate for any other reason before the insureds death.
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Identification of the Insured : The claim examiner confirms that the person who died was the person insured by the policy
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Verification of the loss In order to verify that the insured has died, the claim examiner must examine the proof of loss document provided to him. In most cases, the death certificate or other proof of loss document submitted by the claimant provides all of the information the claim examiner needs to verify
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Verification of Policy Coverage The insurance policy is reviewed to determine what type of coverage it provides. The policy exclusions must be considered e.g. Suicide exclusion.
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Identifying the proper payee
Primary Beneficiary named ? Living ?
Approval to pay claim
Pay Primary Beneficiary
Proceeds payable to Policy owner if living; Otherwise to Policy owners Estate
Contingent Beneficiary named ? Living ?

Second Contingent Beneficiary named ?
Pay Contingent Beneficiary
Living ?
Other Contingent Beneficiary named ?
Pay Second Contingent Beneficiary
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Determining the amount of death benefits
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Payment of Policy Proceeds
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Thank You for your participation
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Introduction To Life Insurance

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CSC Proprietary 07/09/11 12:52 PM 008_P2_CSC_white

Introduction to Life Insurance

CSC Proprietary 07/09/11 12:52 PM 008_fmt_wht

Introduction to Life Insurance

Objective of this presentation

Introduction to Life Insurance

Introduction to Life Insurance

Life Insurance Industry

Introduction to Life Insurance

Life Insurance Industry

Introduction to Life Insurance

Life Insurance Industry

Introduction to Life Insurance

Life Insurance Industry

Introduction to Life Insurance

Life Insurance Industry

Introduction to Life Insurance

Introduction to Life Insurance

Meeting Needs of Individual and Business

Introduction to Life Insurance

Meeting Needs of Individual and Business

Final Expenses and Estate Planning

Education Retirement Costs Income

Introduction to Life Insurance

Meeting Needs of Individual and Business

Introduction to Life Insurance

Meeting Needs of Individual and Business

Introduction to Life Insurance

Meeting Needs of Individual and Business

Introduction to Life Insurance

Meeting Needs of Individual and Business

Pays the cost of an insurance policy on the life of the proprietor

Introduction to Life Insurance

Meeting Needs of Individual and Business

Introduction to Life Insurance

Meeting Needs of Individual and Business

A person whose death would cause financial loss to the business

Introduction to Life Insurance

Meeting Needs of Individual and Business

Introduction to Life Insurance

Introduction to Life Insurance

Introduction to Risk & Insurance

Introduction to Life Insurance

Introduction to Risk & Insurance

Controlling Risk - Taking preventive actions

Introduction to Life Insurance

Introduction to Risk & Insurance

The loss must not be catastrophic to the insurer.

Introduction to Life Insurance

Introduction to Risk & Insurance

The more times we observe an event ...

COIN TOSSED 1,000 TIMES

Introduction to Life Insurance

Introduction to Risk & Insurance

The policyowner has an insurable interest in the insured

Introduction to Life Insurance

Introduction to Risk & Insurance

Must have an insurable interest in

Introduction to Life Insurance

Introduction to Risk & Insurance

Introduction to Life Insurance

Introduction to Risk & Insurance