Provide your opinion of life and health insurance

Assignment Help Financial Management

Reference no: EM131970497

Life insurance, like all other insurance, is the ability to combine a homogeneous group of people to spread the risk.

Different insurance companies want to insure different groups of people, for example Progressive Insurance Company insures high-risk drivers for auto, Penn Treaty Network America insures high-risk individuals with medical ailments for long-term care, Foremost Insurance Company insures mobile homes, and Prudential provides group life insurance (sold to employers).

Each company has their own unique rating factors and underwriting, and employs thousands of workers nationwide (and worldwide). Also, they collect millions of dollars in premium, which they turn around and purchase stocks and bonds on the global equities market, which in turn increases our own retirement portfolios.

Trust me, if a company didn't invest their premiums to earn a higher rate, they would go out of business (especially home insurers).

Before we get into understanding a deeper level of life and health insurance, please provide your initial (or underlying) opinion of life and health insurance. I want to clear out the misconceptions early.

Reference no: EM131970497

Questions Cloud

Write a function that validates a sequence of moves : You should aim to make your test cases as complete as possible. That is, it should be sufficient to pick up invalid moves. Your suite of test cases may assume

Would you purchase the machine : You are an engineer for a company that manufactures check valves. One stage of the fabrication process requires that two people per shift assemble the valves.

How much quicker will she pay off the hd television : She decides to pay twice the minimum monthly payment ($20 per month), Instead. How much quicker will she pay off the HD Television?

What sources have you used that you feel are credible : What sources have you used that you feel are credible? Explain why. What sources have you used where you doubt the credibility? Explain why.

Provide your opinion of life and health insurance : Life insurance, like all other insurance, is the ability to combine a homogeneous group of people to spread the risk.

Analyze the impact on the income statement : Generate a projected income statement based on the given scenario. Analyze the impact on the income statement based on the given scenario.

What uniform annual expenditure would be equivalent : An engineer has a fluctuating future budget for the maintenance of a particular machine. During each of the first 5 years, $1000 per year will be budgeted.

Determine the unknown lump sum amount that would make : Using an interest rate of 5.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.

What is fuel cells irr if the salvage value is negligible : A remotely situated fuel cell has an installed cost of $2, 500 and will reduce. What is the fuel cell's IRR if the salvage value is negligible?

User Account

All Pages