Healthcare, Health Insurance, or Life Insurance Issue

Insurance is a form of risk management used to cover against risks and uncertainties (Landis, 2010). As such, insurance is the equitable transfer of risk or loss, from one thing to another (Beth, 1995). This transfer is done in exchange for payment. This research paper will focus on the topic of Life Insurance. It will present the research findings from a community-based interview conducted by finance students while highlighting the importance of Life Insurance. In addition, this paper will outline some fundamental principles in Life Insurance policy with an aim of urging community members to use Life Insurance cover.

Life Insurance involves an agreement between the insured person and the Insurance Company (Steuer, 2010). Life Insurance is meant to protect an individual in the event of serious illness or injury (Baldwin, 2001). When deadly accidents and other life threatening circumstances strike individuals, Life Insurance policy offers them financial solution during this time when they cannot do anything. Mostly, Life Insurance policy offers the beneficiaries some amount of money in case the nominee of the insurance dies (Landis, 2010).

Because many people are not familiar about Life Insurance, during the first two weeks of October 2011, my friends and I sought to investigate how familiar the society is concerning issues of Life Insurance. During this period, we conducted a door-to-door interview. After an extensive interview and interaction with community members, we found that, indeed most community members are not familiar with Life Insurance policy. In fact, only a small number of individuals are informed about Life Insurance. However, even among the informed individuals, some do not have enough knowledge and there are some misunderstandings about this topic.

Foremost, most people believe that Life Insurance only targets breadwinners in a family. This is very wrong and people should understand that Life Insurance is a universal policy that is necessary for all (Baldwin, 2001). For instance, a homemaker is very essential in the family setting. Losing homemakers is very costly since they are helpful when it comes to issues of day care and general home cleaning (Landis, 2010).

Secondly, most single people or people with no dependants assume that since they have no dependants, it is no use to have Life Insurance cover. This is not true since a person with no dependants also needs a Life Insurance to cover personal debts, medical expenses, and all funeral expenses (Steuer, 2010). If an individual dies and he/she does not have a Life Insurance, the parents or relatives will incur all funeral expenses.

People also assume that individuals with serious illnesses like diabetes or HIV Aids cannot be covered by Life Insurance. This is not fact; it is possible for people with serious illnesses to access Life Insurance (Landis, 2010). In fact, many insurance companies specialize in providing this kind of service. Although it may be a bit expensive, diabetic people can get a Life Insurance.

Lastly, some people think that Life Insurance is only meant to cover for funeral expenses. However, apart from covering funeral expenses, Life Insurance policy covers for severe injuries, serious illness, and other expense like loans for the insured person (Beth, 1995). Other benefits include opportunity for tax deductions and capital gains (Steuer, 2010).

Due to the myths and misconceptions held by community members about Life Insurance, our team recommended that it is important for insurance companies and other government organizations to carry out training seminars to educate the public about Life Insurance. This is because Life Insurance is necessary and important part of human portfolio to ensure financial security in the future (Landis, 2010).

Owing to the fact that people are not fully informed about Life Insurance, it is essential that amateurs learn some basics to ensure they do not settle for the wrong deal (Regda, 2008). Once an individual decides to invest in Life Insurance, it is fundamental that an individual must understand his/her financial abilities (Regda, 2008). With such understanding, individuals can choose policies that suit their needs. This is important because the Insurance Company may not provide such information.

In addition to this, interested individuals should also understand the requirements, terms and condition, payable premium, nature of the policy, and coverage of the policy (Regda, 2008). These factors are important because understanding them will help an investor to know which policy is best for them (Regda, 2008). Most importantly, when signing Life Insurance individuals should learn the benefit attached to the desired policy to the candidate. To get reliable information, interested individuals should contact experts or conduct proper market research for a broader perspective and understanding (Landis, 2010).

In conclusion, acquiring a Life Insurance is a good option. In fact, as soon as an individual start earning, it is advisable that one should enter into a Life Insurance since this is a good way of ensuring that your financial future is fully secured (Regda, 2008). However, it is advisable that an investor should look for enough information to be acquainted with Life Insurance policies available to suit ones needs (Baldwin, 2001). The knowledge that today’s society has some of the prevalent beliefs about Life Insurance; it equips insurance companies with the basis of educating the society. The most important concept that individuals should understand is that Life Insurance should be part of their budget to cater for the future (Regda, 2008).


Baldwin, G. (2001). The new life insurance investment advisor. New York: McGraw Hill.

Beth, J. (1995). Life Insurance: A consumer’s handbook. Bloomington: Indiana University Press.

Landis, A. (2010). Life Insurance. Charleston: Nabu Press.

Regda, G. (2008). Principles of Risk management and Insurance. (8th ed.). Ventura: Academic Internet Publishers Inc.

Steuer, S. (2010). Questions and Answers on Life Insurance: The Life Insurance Toolbook. Austin: Green leaf book Group.

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