Termpaper on Status of Life Insurance in the Philippines

One of the key benefits of universal whole life insurance happens to be this form of insurance allows an individual to adjust their coverage levels based upon their variables and conditions within their lives. This is a very important advantage of universal whole life insurance because an individual’s financial status and social economic conditions can vary throughout their lifetime. This can cause a need for variations in their life insurance coverage levels. Another important advantage is that the interest rate at which universal whole life insurance policies grow is established or guaranteed. A third advantage of universal whole life insurance is an individual can increase or reduce their death benefit when situations

During the 1910’s the American Association for Organized Labor (AALL) banned together to have the first talks about acquiring social insurance, but when the United States entered into the war in 1917, combined with doctors and other organizations put a stall on the social insurance idea.

Benjamin Franklin helped to establish in 1752, what it would be the first mutual insurance company. For many years, the United States government never considered necessary to incorporate a system that would compensate their citizens in case any injury, accident or loss happen to them. It wasn’t until 1735 the first underwrote fire insurance company was created; in Charleston, South Carolina. Underwrite insurance companies are the ones, that analyze all the risk of insuring a particular person or asset and uses that information to set a premium pricing for insurance policies. But it took 20 years to create the first mutual insurance company, one in which policyholders would come together to share the risk.

1929: First offering of prepaid hospital insurance to members of a teachers union in Texas. Offering insurance for the employed

For many years, the organizations had purchased life insurance for their employees, the key reason is that through some key personnel from the insurance company to maintain their own financial loss on their lives when events occur (Martin, 2010). On the other hand, the insurance company by emphasizing their tax advantages, to encourage corporations to purchase the corporate-owned life insurance. The goal of corporate-owned life insurance is corporations need to take large loans in order to pay for the insurance fee and make the maximize profits of tax. At the same time, the corporations can get a large amount of income tax from their interest payment. However, in 1986, the insurance organizations established new form which named Tax Reform

1920 – The cost of health insurance rises and medical attention converts tough for middle class to have the funds for. Universal and Baylor University begin to offer insurance to their health care workers.

An Insurance agency that continues to change the industry is Progressive and began in 1937(Progressive, About) Progressive was also the first to reduce rates for low risk drivers, as well as offering comparison rates with its top competitors on its website. (Progressive, Intro). They are currently based out Mayfield Village, Ohio with branches in 450 cities and employee around 25000 individuals.

business of insurance. But the lack of uniformity, loop holes, blind spots and deficiencies within

Since voluntary was more favored than compulsory insurance. The French system never respected the United States; social insurance program gave limited benefits for the population. While Germany established the national health insurance way before the United States. The United States used, the risk of the workmen’s compensation and health insurance that protected old age, which was one of the earliest social insurance program in the 1930’s. (Altmeyer, 1966)

The Early Historical Accounting for Postretirement Health Care and Life Insurance Benefits and the Guidance or Rules in Place Today

A variety of health plans have existed in one form or another for hundreds of years; history is able to show that medieval guilds collected fees from guild members with a portion of those funds going towards care for the sick. The beginning of modern insurance as we know it today can be traced back to regional cooperatives, as well as the inception of the Baylor plan, which was the impetus for the creation of Blue Cross.

began in 1937 with the first drive-in claims office, became the first to introduce reduced rates for low-risk drivers, and then changed the insurance shopping experience by offering comparison rates on the Web.

Baye, M.R., Prince, J.T. (2014). Managerial Economics and Business Strategy. New York, NY: McGraw-Hill Irwin

The reason for life insurance is to safeguard the most valued asset a young investor has, human capital. The investor is protecting his future earnings against lifetime uncertainty. In the event of passing away, the insured’s heirs or dependents will be given a sum of money to replace the wages he provided. Commonly, policies are bought to hedge against the mortality risk, “so human capital affects both optimal asset allocation and demand for life insurance.” Mortality risk is hedged by life insurance because the more human capital an investor has, the more life insurance he will need. This is perfect because of the negative 100 percent correlation the consumption (alive) and bequest (dead) state have with one another.

To ensure that it penetrated the largest religion group market, i.e. Islam, Sun Life introduced several investment and medical Takaful (Islamic)