This chapter explain the concept of risk and the basics of insurance underwriting; discuss the primary reasons for life insurance and identify those who need coverage; calculate how much life insurance you need; distinguish among the various types of life insurance policies and describe their advantages and disadvantages;. | PFIN 4 Insuring Your Life 8 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Explain the concept of risk and the basics of insurance underwriting Discuss the primary reasons for life insurance and identify those who need coverage Calculate how much life insurance you need Distinguish among the various types of life insurance policies and describe their advantages and disadvantages Choose the best life insurance policy for your needs at the lowest cost Become familiar with the key features of life insurance policies LEARNING OBJECTIVES PFIN4| CH8 Basic Insurance Concepts Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or . | PFIN 4 Insuring Your Life 8 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Explain the concept of risk and the basics of insurance underwriting Discuss the primary reasons for life insurance and identify those who need coverage Calculate how much life insurance you need Distinguish among the various types of life insurance policies and describe their advantages and disadvantages Choose the best life insurance policy for your needs at the lowest cost Become familiar with the key features of life insurance policies LEARNING OBJECTIVES PFIN4| CH8 Basic Insurance Concepts Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Purpose of insurance Protect people from the financial consequences of losing assets or income when an accident, illness, or death occurs Strategies to prevent financial loss Risk avoidance: Avoiding an act that would create a risk Loss prevention: Any activity that reduces the probability that a loss will occur PFIN4| CH8 Basic Insurance Concepts Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Loss control: Any activity that lessens the severity of loss once it occurs Risk assumption: Choice to accept and bear the risk of loss Insurance policy: Insurer agrees to reimburse the insured for any losses suffered according to specified terms PFIN4| CH8 Underwriting Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, .
