Sunday, December 4, 2011

Life Insurance & Science

Science plays an interesting role in the world of life insurance, both for insurance companies and potential clients. Due to medical advances, individuals live longer than in previous generations. They also survive accidents, diseases and other traumas at higher rates. Consequently, the decision to select a certain insurance policy is not as black and white as in the past. The definition of old age is constantly changing, as is the notion of terminal illness.

For insurance companies, science influences when an individual decides to invest in insurance as well as the type of plan. Individuals may wait longer until the likelihood of mortality is high enough to support the investment. Individuals also may opt for shorter term insurance policies versus universal plans. Since most individuals invest in insurance policies to help their dependents in case of death, they may only desire coverage until their children are adults.

However, individuals must be careful when selecting life insurance policies. Because more and more individuals survive serious illnesses and diseases, selecting life insurance with this kind of medical history can be expensive and potentially impossible, as companies are wary of insuring individuals with high risks of death.

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