Tag Archives: Life Insurance

Custom Insurance

When you think of insurance, chances are what first comes to mind is life insurance, which protects against premature death and therefore the loss of a lifetime of income.  You might also think of car insurance, which helps pay the costs of an accident, and disability insurance, long-term care insurance and homeowners’ insurance.  The underlying mathematics of these contracts, used by actuaries, involves risk pooling, where many people contribute to a large pool of assets, and then the pool of assets will pay out to a relative few people who experience a car accident, or suffer a temporary or permanent disability, or die young.  People pay a relatively small amount to be protected from relatively large catastrophes.

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