Article Categories

»	Arts & Entertainment
»	Automotive
»	Business
»	Careers & Jobs
»	Education & Reference
»	Finance
»	Food & Drink
»	Health & Fitness
»	Home & Family
»	Internet & Online Businesses
»	Miscellaneous
»	Self Improvement
»	Shopping
»	Society & News
»	Sports & Recreation
»	Technology
»	Travel & Leisure
»	Writing & Speaking

Reprint Article Code

Category: Articles » Finance » Insurance » Article » Article Code

Life Insurance - a gamble on your life!

Insurance may be described as a hedge against life's uncertainties . To that end, it can never be taken too seriously. Every year, the person insuring himself bets that he will not be living another year and the insurer is betting that he will. If the person lives, and loses the bet, he pays the insurer a small premium; if he dies, the insurer pays the lump sum "jackpot" to the person's nominee. While the person taking up the policy has only one life to bet on, his insurer is playing the same game with millions of other ... read more

Article Title:

Article Body:

Insurance may be described as a hedge against <a href="http://www.discountedlifeinsurancequotes.com"> life's uncertainties</a>. To that end, it can never be taken too seriously. Every year, the person insuring himself bets that he will not be living another year and the insurer is betting that he will. If the person lives, and loses the bet, he pays the insurer a small premium; if he dies, the insurer pays the lump sum "jackpot" to the person's nominee. While the person taking up the policy has only one life to bet on, his insurer is playing the same game with millions of other people like him. Since the insurer's risk is spread, he can offer huge odds. Moreover, the insurer invests the premium he receives each year, and has employees (called Actuaries or Actuarial Officers) who calculate the odds on each policy based on mortality rates, the mortality experience of the insurer, and the return on investment which the insurer is likely to get. These in essence, form the framework of determining the premiums paid by policy holders, and the returns expected from the policies.

It is the Life Advisors of each company who are responsible for creating the relation between the insurer and the policy holder. He meets with the prospective policy holder, and in conjunction with him, determines which policy would best suit his needs. Indeed, it is through the Life Advisors that every Life Insurance Company manages to maintain a personal relationship with its clients.

It is the requirement of each company to constantly try and establish an identity for itself, and to provide to its customers, both existing and prospective, that which its competitors can't.

In other words, to establish one or multiple Points of Differentiation. Again, the customer for life insurance ends up paying a rate of premium which has been determined upon data which is sadly loaded in the insurers favor.

As stated earlier, the insurance premiums are calculated by the insurer's actuaries after taking into account mortality rates, and mortality experience. In many countries, especially the poorer countries, neither private insurance companies, nor the LIC are permitted to conduct the nationwide studies required to determine the mortality rates.

The information is provided by the governments, for a fee, from data taken during the Census. Since this data in itself is old, and mortality rates have significantly decreased in the last 14 years, the customer is actually paying more premium than he should for a life insurance policy.

Interested in this subject? Try this link for <a href="http://www.discountedlifeinsurancequotes.com">more of the same</a>

Author Bio:

Some other recently published insurance articles

Get the Best Insurance Policy For Your Home by Barbara Thorp
We all know getting a home insurance is important, but still some of us tend to scrimp on this basic aspect of ...

Travel Insurance Online: Both Money And Time Saving by Henry Bell
Traveling is hobby of many people. People like to spend their leisure time in traveling different place of all parts ...

Travel Insurance UK: Travel Without Worries by Henry Bell
Travel insurance in UK has always been considered as a very expensive thing and also that it was designed for the wealthy and prosperous people only. It was considered as such because traveling involves big ...

Now You Can Have Home Insurance Leads that Convert to Policies by Ken Wilson
The guarantee of your home being paid for in case of a disaster of any kind is something that every home owner ...

The Secret of Auto & Home Insurance by Clint Jhonson
There is a stringent competition on the insurance market and various companies are using their best resources in order to attract interested customers. The truth is that many people are ...

Must Know Insurance Saving Tips and FAQ by Clint Jhonson
Every person interested in purchasing a health insurance policy is advised to careful consider his/her decision. There are many factors that can influence any type of insurance and the ...

Publisher Guidelines

You may reprint this article electronically in your newsletter or on your website, free of charge.

If you reprint this article from our site, then you must keep everything intact. This includes the articles title, author name, articles body, authors bio / resource box, the links contained within the article, all copyright notices and the link pointing back to our site. All links within the article must also be made active / hyperlinks.