Pros and Cons of Insurance Policies: an Exploratory Study

Topics: Insurance, Life insurance, Investment Pages: 6 (1694 words) Published: February 12, 2013
Pros and Cons of Insurance Companies:
An Exploratory Study

Thesis Statement

Life Insurance is not new when it comes to people who want to render themselves inside these said insurance companies because of the benefits they can get but the chances that this companies will close is nearly 50/50 which means you don’t have any assurance regarding in satisfying yourself or they could grant the said contract without any faults or problems. Insurers should know the risks/benefits they can get before entering this kind of transactions OUTLINE

I. Introduction
a. Life Insurance
b. Statement of the problem
c. Importance of the paper
d. Definition of terms
II. Research Body
III. Summary and Conclusion
IV. Reference

Pros and Cons of Insurance Companies: An Exploratory Study

(Background of research)
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders. It is possible for life insurance policy payouts to be made in order to help supplement retirement benefits; however, it should be carefully considered throughout the design and funding of the policy itself. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

The main objective of the study is to know more about what is happening in a world of financial issues regarding in insurance companies. Here are the questions that this paper will try to answer:
What are the benefits/risks when you engaged yourself in an insurance company/

Why some life insurance companies undergo to a bankruptcy?

How does an insurance company handle people's money?

Pros and Cons of an insurance company

Importance of the paper
For those who want to know how important life insurance in our daily lives. They also have to learn how their lives would be convenient. Many Life insurance companies close due to lack of trust of people in this type of organization and this research paper will cite some of those risks that will help future insurers what to know before they enter this kind of company that can do a large part for your family in the near future.

Definition of terms
Bankruptcy-The state of being completely lacking in a particular quality or value Beneficiary- One that benefits from something; The person designated to receive the income of trust estate Convenient- Suited to personal comfort or to easy performance Insurance- The business of insuring persons or property

Insurer- One that insures; specifically an insurance underwriter Insolvency- Inability to pay debts
Investment- outlay of money usually for income or profit
RISK – uncertainty of a financial loss; term used to designate an insured or a peril insured against.

Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. Life insurance helps protect your family financially by replacing some or all of your income after you dies. In some cases, you might want to buy a life insurance policy on someone else and name yourself as the beneficiary. For instance, if you are divorced and get child support, you might want to buy a life insurance policy on your former spouse. With only a few known exceptions, life insurance companies that have become insolvent over the past thirty years have been financially marginal, low rated, stock insurance companies operating on a...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • unemployment Insurance policy Essay
  • Pros and Cons of Federal Deposit Insurance Corporation Essay
  • Education policy in bangladesh. based on three insurance companies. Essay
  • insurance Essay
  • Insurance Policies & Consumer Behaviour Essay
  • Staffing Policies
  • Essay about Progressive Insurance Case Study
  • Essay about Pros and Cons of Social Studies Teaching

Become a StudyMode Member

Sign Up - It's Free