Episode 1307
In this episode, we break down the complex world of life insurance, a financial contract that promises a payout to beneficiaries upon the death of an insured person. We explore the fascinating evolution of the industry, tracing its origins from ancient Roman "burial clubs" and the Amicable Society of 1706 to the sophisticated financial products available today,.
What You’ll Learn in This Episode:
• The Mechanics of Risk: How insurers use mortality tables—first created by Edmund Halley in 1693—and modern underwriting to calculate premiums based on age, health, and lifestyle,,.
• The Parties Involved: The crucial legal distinctions between the policy owner, the insured, and the beneficiary, and why the owner must have an "insurable interest" to prevent speculative murder plots,.
• Types of Coverage: A comparison of Term insurance (temporary coverage for a set period) versus Permanent insurance (like Whole Life and Universal Life), which covers a lifetime and accumulates cash value,,.
• The Fine Print: We explain the difference between "insurance" and "assurance," and detail common exclusions, such as suicide clauses and high-risk activities,.
• The Dark Side: A look at "Stranger-originated life insurance" (STOLI), insurance fraud, and historical cases where policies were used as a motive for murder,.
We also touch on the complex taxation rules in the US, UK, and India, and discuss the surprising issue of unclaimed death benefits,,. Whether you are looking for simple protection or an investment vehicle, this episode provides the essential history and vocabulary you need to navigate the market.
Published on 19 hours ago
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