MTHEL131 Lecture Notes - Critical Illness Insurance, Confederation Life, Reinsurance
9 Feb 2014
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1757, first try to set up a life insurance company, but it didn"t pass. Purpose: replacement of earning for who bought insurance and lose the ability to earn money. Reasons of getting a life insurance: 1. to insure we are able to protect family. 2. to focus on financial concern, help people manage money. Primary financial concern: 1. manage the risk of the family who die too soon. 2. manage the risk of the family who live too long. 3. manage the risk of the family who become disable or seriously ill. 1583, london england (1st life insurance contract in the history) The reasons why only 174 years later, there comes life insurance companies. 3. lack of knowledge death rate for commercial purposes. the confusion on mind of general public and gambling. 1762, 1st insurance company was founded the old equitable . Premium = the consideration paid for contract of insurance.
