Why Life Insurance

Risk of financial ruin is an important factor of having insurance. You Might face some health problems in later months like a sudden accident, cancer, diabetes, kidney stones or a car accident, this will leave with staggering medical bills. And not paying

Suicide is intentionally causing your own death out of despair. It is considered a behavior and may result from a form of mental illness, but is not classified as a distinct psychiatric disorder. It can stem from different factors such as personal, social, financial or historical well-being. ("Mental health and wellness," 2013)

However, as you get older, the pure cost to maintain policy increases. There is no need to worry because as long as you continue to pay a stated premium each year, life insurance remains in force. You will need more expensive life insurance protection; the accumulating cash will pay for it. Your move to purchase universal life insurance policy was very wise because it is used to cover temporary needs and permanent type of insurance.

"Insurance is a legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits or property damage."(Nielson.) This protection is given to the customer in exchange for a monthly payment to the company. This is a legal contract which is known as a policy, binds the customer to the insurance company for the duration of the policy. Insurance, whether it be life, health or auto, helps customers feel safe from everyday risks that can happen in life. Most insurance is optional, although some states enforce a law that automobile insurance must be purchased in order to register a car. Automobile insurance is very important. It helps the policy holder to protect their car

To answer this question, the important point is who is the largest beneficiary in these policies and what actually make policy profitable, it is an insurance company, corporations or market? The companies earn extra profits from the dead peasant insurance policies. For example, the company encourages their employees to buy the insurance and many of employee were voluntary because if they suffer some unforeseen events, they will get the compensation from the insurance company. But when events occur, the employee had already demotion or dismissal. Thus, employees are not larger beneficial owner, corporation is. However, there has one question that is the insurance company how to keep their business, even if they found the beneficiary is a corporation under these policies. Actually, the main driving force for company adapt to these policies is tax law, not free market competition.(Smith, 2011)Therefore, the corporation wants to gain the extra benefits from the dead peasant policies is the main reason why dead peasant insurance policies

In fact, if you are like most Americans, you may several term life insurance policies. You may not even realize you have them. These are often accidental death policies that only pay if die of an accident. Sometimes, they are more strictly defined, such as "while flying."

Taking the medication to end their life should not affect any insurance policies, including, but not limited to: life insurance, health insurance, or accident insurance.

Life insurance policies normally aren't paid out until your loved one passes away. Accelerated death benefits, however, allow your loved one to receive a portion of their life insurance policy in advance of their death. They can use this money to pay for in-home care. To determine if they can use this benefit, your loved one should talk to their life insurance broker.

Yes Linnett, it is sad that a life insurance policy valuing one million dollars, would only pay out the premiums collected to date surrounding the cause of death. Suicide is a hot topic in life insurance. Some policies will pay even if suicide is the cause of death, but the amount to be paid, if death occurs within the first 2 years of the effective date is and will be limited. This is the case of the Officer's family. Many coverages come with certain exclusions with null and void, sometimes found in the "fine print," regarding the benefits to be paid under a policy within its effective date. A sad

But there are cases where someone else takes out life insurance on an individual. According to the insurable interest doctrine, insurable interest exists when the individual is currently benefitting the person or entity taking out the policy such that their demise would incur a loss to them.

When someone finds out from the family doctor that they have a life-threatening illness wouldn’t that person expect insurance to cover expenses that correspond with the treatment or curing of said illness? What if the pregnancy was causing the illness? In another case, A woman finds out that she is expecting. She is later diagnosed with a life-threatening illness or disease that requires an abortion for her survival? Insurance coverage for that type of abortion is appropriate.

high proportion of people without coverage, the inefficient and inequitable incentives for the purchase and provision of insurance, the problems in deciding what should be covered, the ineffective payment incentives, administrative costs and complexities, the variable quality

Most of us understand that having insurance is about protecting the future. An unforeseen tragedy like the death of a spouse, a major auto accident or the loss of a home or business to fire can financially devastate a family or business and upend years of careful planning.

Millions of insurance plans have annual payout limits, though the more typical plans purchased by employers usually set those limits at $500,000 or $750,000 -- which can also quickly be consumed by a catastrophic illness.

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.