Disadvantages Of Life Insurance

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Life insurance is a contract between two parties: the insurer and the insured. The insurer is the party that receives the premiums from the insured and pays a certain amount of money to a previously assigned beneficiary. The payment is done upon the death or due to the occurrence of other unfortunate events, such as critical or terminal illnesses of the insured. The premium can be paid either as an annuity or in the form of a lump sum. Funeral expenses might also be included in the insurance policy contract. The person responsible for making payments for a policy is the policy owner, while the insured is the person whose death will trigger payment of the death benefit. The owner and insured may or may not be the same person. For example, if Steven buys a policy on his own life, he is the owner and the insured party at the same time. But if Celina, his wife, buys a policy on Steven's life, she is the owner and he is the insured. The policy owner is the guarantor and he will be the person responsible for the payment of the premium. The owner can change the beneficiary unless the…show more content…
In order to assess Touch’s and Credit Libanais’ decision for owning the life insurance company, we conducted a feasibility study to show the viability of the project. A financial feasibility study states how much start-up capital is needed, from where the capital is going to be raised, returns on investments, and other financial considerations. It shows how much cash is needed, the sources of cash, and how it will be spent. This study answers the questions: will the idea work? And should you proceed with it? A feasibility study has six components: 1) Description of the Business: The products or services the company is willing to offer and how they are going to be delivered to final

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