Life Insurance Definition Economics

Life insurance or life assurance especially in the commonwealth of nations is a contract between an insurance policy holder and an insurer or assurer where the insurer promises to pay a designated beneficiary a sum of money the benefit in exchange for a premium upon the death of an insured person often the policy holder.

Life insurance definition economics. The economic justification for an insurance system is that it contributes to general welfare by improving the prospect that plan will not be frustrated by random events. Whole life insurance lasts for a policyholder s lifetime as opposed to term life insurance which is for a specific amount of years. Learn more about selecting the right policy for you and how some policies can. Life insurance is a contract between an insurer and a policyholder.

It encompasses systems that cover losses in both property and human life values. Insurance is a contract policy in which an insurer indemnifies another against losses from specific contingencies or perils. The correlation results showing the relationship between life insurance companies and the cameroon economy is in table 3. Economatic life insurance also called economy life insurance is a combination of whole and term life insurance.

Econometric results the econometric results will shows us the degree of relation between the gdp which is a measurement of cameroon economy and insurance coverages which is the indicator for life insurance companies b1. Whole life insurance is paid out to a beneficiary or. The dividends paid by the participating whole life go toward changing the term coverage to whole life so that by the end of a set number of years the goal is that the entire policy is whole life. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies in.

Life insurance life insurance can provide peace of mind that your beneficiaries will be provided for after you die. There many types of insurance policies. Depending on the contract other events such as terminal illness. The net premium of the contract is by definition p.

We shall assume that there is a demand for the insurance cover given by this contract and that demand depends on the premium. Each has a different set of features. In this lesson we ll talk about the two types of companies from which you can get life insurance.