Life Insurance

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Life Insurance is a widely used class of insurance product (policy) whereby an insured person (policy holder), in a exchange for an insurance premium paid regularly obtains a promise by an insurer to pay a designated beneficiary a sum of money upon the death of the insured person

Subtypes of life insurance risks

  • Mortality risk: Unexpected negative changes in mortality rates
  • Longevity risk: Unexpected positive changes in mortality rates
  • Disability / Morbidity risk: Unexpected changes to disability, sickness or morbidity rates
  • Expense risk: Changes to the expenses incurred in servicing insurance or reinsurance contracts
  • Revision risk: Changes to the revision rates applied to annuities, due to changes in the legal environment or in the state of health of the person insured
  • Lapse risk: Unexpected policy lapses, terminations, renewals and surrenders
  • Catastophe risk: Impact on life insurance contracts of extreme or irregular events

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