| Life and health insurance have long been recognized | | | | unfortunate few paid by the contributions of the |
| as necessary and essential elements in an individual's | | | | many who are exposed to the same peril. |
| or a family financial program. In a modern society, a | | | | The essence of of insurance is the sharing of losses |
| sense of family responsibility meant that life and | | | | and, in the process, the substitution of a certain small |
| health insurance would grow in importance. | | | | loss ( that is to say the premium payment ) for an |
| And still today life and health insurance continue to | | | | uncertain, large loss. |
| occupy an important role in the financial planning | | | | In the peril under consideration is that of the death, |
| process. | | | | the financial loss suffered can be reduced through life |
| This article has the purpose to provide an | | | | insurance. If the peril is instead disability, the financial |
| introduction to this process and highlights the means | | | | loss can be compensated by the health insurance. |
| by which life and health insurance can assist in | | | | Insurance may be defined from two perspectives: |
| accomplishing one's financial plans. | | | | that of the society and that of the individual. From |
| A personal financial planning can be considered the | | | | the society's point of view, life or health insurance |
| process where an individual or a family decided to | | | | may be defined as a social device where individuals |
| develop and implement an integrated plan to | | | | transfer the financial risks associated with loss of life |
| accomplish their objectives. The essential elements of | | | | or health to the group of individuals, and which |
| this financial planning concept are the identification of | | | | involves the accumulation of funds: and this concept |
| financial goals and the development of an integrated | | | | means that the insurance exists when there is a |
| plan to accomplish the objectives. | | | | transfer of the risk from the individual to the group. |
| As all of us know humans are exposed to many | | | | From the individual's point of view, life or health |
| serious perils, such as property losses from fire and | | | | insurance may be defined as an agreement where |
| windstorm, and personal losses from disability and | | | | one party pays a stipulated consideration ( the |
| death. Although individuals can not predict or prevent | | | | premium ) to the other party ( the insurer ), in return |
| completely the occurrence of these dangerous | | | | for which the insurer agrees to pay a defined |
| events, they can provide against thier financial | | | | amount of money if the person whose life is insured |
| effects. The function of insurance is to safeguard | | | | dies or suffers an illness to a stated time. |
| against such misfortunes by having the losses of the | | | | |