Use For :
Broader Terms :
Related Terms :
Also known as Life Insurance, is the "assumption by an insuring organization of the risk of death of a policy holder. Mortality is subject to the laws of probability, however, and life-insurance premiums can be calculated from mortality tables, which indicate the average number of people in each age and gender group that will die each year. A person trained to make such calculations, known as an actuary, determines the amount of premiums to be collected yearly from each group in order for the principal (the premiums) and its earned interest to equal the benefits to be paid to the policyholder's beneficiaries." (Source: Microsoft Encarta 98 Encyclopedia, CD-ROM, Information- Reference Section, 2nd floor).
Life insurance, sometimes referred to as "life assurance, provides for a payment of a sum of money upon the death of the insured. In addition, life insurance can be used as a means of investment or saving." [Quoted from :www.swissre.com/INTERNET/pwswpspr.nsf].