When you have finished this chapter, you should be able to
We begin our study of specific types of insurance with life insurance. We do this for two reasons. First, the life insurance policy is one of the simplest of all the insurance contracts. The insuring agreement is straightforward and to the point, there are relatively few exclusions, and the conditions and stipulations are easily understood.
In addition, we treat life insurance before the wide range of other insurance coverages that may be needed by individuals because many college students will soon be considering the purchase of life insurance, some even before graduation. By treating life insurance at this point, some students may avoid costly mistakes.