Saturday, December 6, 2014

Life Insurance Involves


  1. ASSET - a kind of property that yields value or a return
  2. Human Life Value (HLV):


  • Developed by prof.Hubener
  • HLV concept considers human life as  a kind of property or asset that earns an income
  • It measures the value of human life based on an individual's  expected Net future earnings. these earnings are capitalized, using an appropriate interest rate to discount them.
  • Helps to determinr how much insurance one should have for full protection 
  • the amount of insurance should be around 10 to 15 times of one's annual income
     3. Typical concerns faced by ordinary people
  • Dying too early
  • Living too long
  • Living with disability
    




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