Principles of Risk Management and Insurance, 13th Edition

Chapter 11 Life Insurance

“Death is one of the few things that can be done as easily lying down.”

Woody Allen

“There are more dead people than living, and their numbers are increasing.”

Eugene Ionesco

Learning Objectives

After studying this chapter, you should be able to

1. Explain the meaning of premature death.

2. Describe the financial impact of premature death on different types of families.

3. Explain the needs approach for estimating the amount of life insurance to own.

4. Describe the basic characteristics of term life insurance.

5. Explain the basic characteristics of ordinary life insurance.

6. Describe the following variations of whole life insurance:

   • – Variable life insurance

   • – Universal life insurance

   • – Indexed universal life insurance

   • – Variable ...