I. Introduction to Life Insurance 人壽保險簡介

Everyone will die but no one knows when, so the need for life insurance arises from the financial effects of death, long life and loss of earning power on individuals, families and businesses. Life insurance can provide an agreed sum at once, filling gaps that savings alone may not cover.

Needs for Life Insurance

A life policy owner must have an insurable interest in the life insured at inception, and the proposer and life insured must disclose all material facts before the contract is concluded. Life insurance is not a contract of indemnity, so contribution and subrogation generally do not apply, although proximate cause remains relevant to claims such as accident benefits.

Insurable Interest · Duty of Disclosure · Other Insurance Principles

Life insurance premiums are calculated mainly from mortality, interest and expenses: higher mortality or expense assumptions raise the premium, while a higher interest assumption lowers it. The pricing system is either a natural premium, which rises with age, or a level premium, which stays constant during the payment period and builds up a reserve.

Rating Factors · Pricing Systems