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CHAPTER 8: ESSENTIAL QUESTIONS

1. Explain the origin of "dead peasants" insurance. What are the moral issues in assessing dead peasants insurance? If you owned a corporation would you take out dead peasants insurance on your employees ? yes or no?

2. Occasionally life insurance fraud can take place. What are some example of insurance fraud that you can share with the class? How do insurance companies protect against the risk of fraud?

3. Define term and whole life insurance. In terms of assessing the value of "whole life insurance" some money managers argue it should be avoided because of the poor return to risk ratio. Research those who advocate this stand. In general what return would you need in the market to make regular investing more valuable than "whole life insurance"?

4. The field of actuary science is focused around risk assessment in terms of insurance pricing and premiums. Describe the history of this field and its origin. Describe the education and career path of someone who becomes an actuary for an insurance company.

5. You marry and have your first child on the way necessitating a need for term life insurance. How would you go about researching companies to buy term from? Given the current markets what are the top five companies you would recommend buying term life from and why?