LIFE INSURANCE

Life insurance is essentially a way of insuring an income stream. In a family, one or both of the spouses earn an income and they are either mutually dependent, or one is dependent on the other, or there are children who are dependent on their parents for support. Life insurance provides the capital to replace a portion or all of the income which is no longer provided when the insured dies. As in all forms of insurance, all insureds share the risk of premature death and spread this risk amongst themselves. Insurance actuaries use actuarial tables developed using statistical methods to determine what the risks are which are then used to calculate insurance costs. Please click on Types of Life Insurance to get a detailed description of the different types of life insurance. For a description of the principles of risk management, please click on Insurable Risks and the Principles of Risk Management.