In the wake of the financial crisis, many economists are trying to come up with creative new ways to deal with systemic risk: the risk of a “wholesale bank failure” and failure of the financial system in general. I just finished reading Judge Posner’s recent book, A Failure of Capitalism. In it, Judge Posner makes a convincing case that individual bankers can (and did) make rational decisions that, at least in the aggregate, greatly increase systemic risk. I don’t wish to go into the details of that analysis here; I just want to assume its truth.
What is life insurance premium?
It is regular amount pays to insurance company to purchase a policy and to keep it in force; in return the insurance company agrees to pay your nominee or beneficiary a sum of money upon your demise. In the event you suffer total and permanent disability, the payment will be made to you; in these circumstances the money is usually payable in installments.
Premiums will rely on many factors including health history, age, amount of family members, deductibles and co-pays chosen and your location. The plan required truly relies on the individual or family.