Life Insurance Life insurance is designed to provideprotection against two distinct risks: prematuredeath and superannuation. As a matter ofpersonal preference, death at any age is probablypremature, and superannuation (living too long)does not normally strike one as an undesirable contingency.From a practical point of view, however,a person can, and sometimes does, die before adequatepreparation has been made for the futurefinancial requirements of dependents. In the sameway, a person can, and often does, outlive incomeearningability. Life insurance, endowments, andannuities protect the individual and his or her dependentsagainst the undesirable financial consequencesof premature death and superannuation.
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