Page 45 - Life Assurance
P. 45
5/6
Summary
1- Life insurance is a method of creating an
estate of income -producing property. It is the
only method of creating an immediate estate in
case of premature death, it serves as a hedge
against the possibility that the insured may not live
to carry out property accumulation plans.
2- The chief purpose of life insurance in
estate planning is to provide for dependents in
case of death of the breadwinner.
A secondary purpose of life insurance is to
save money for one's retirement or for other
purposes. Policies are available which meet
these twin purposes with many degrees of
emphasis.
3- Life insurance is commonly issued on a
level premium basis. Because death rates rise
substantially over a long period of years, more
money must be collected in the early years to
offset the higher mortality costs of the later
years. For this reason all policies, except pure
term insurance, accumulate a cash value known
as the reserve.
145 Life51/life/life 08
Summary
1- Life insurance is a method of creating an
estate of income -producing property. It is the
only method of creating an immediate estate in
case of premature death, it serves as a hedge
against the possibility that the insured may not live
to carry out property accumulation plans.
2- The chief purpose of life insurance in
estate planning is to provide for dependents in
case of death of the breadwinner.
A secondary purpose of life insurance is to
save money for one's retirement or for other
purposes. Policies are available which meet
these twin purposes with many degrees of
emphasis.
3- Life insurance is commonly issued on a
level premium basis. Because death rates rise
substantially over a long period of years, more
money must be collected in the early years to
offset the higher mortality costs of the later
years. For this reason all policies, except pure
term insurance, accumulate a cash value known
as the reserve.
145 Life51/life/life 08
