Benefits Of Insurance

Overzicht

Insurance looks, at first glance, like a private arrangement between one worried person and one company. In truth its good spreads far wider than that. The same premium that buys a Lagos trader a good night's sleep also helps a bank lend, keeps a factory open after a fire, pays the salaries of thousands of agents, and quietly builds the roads and bonds the whole country uses. Benefit flows outward, from the individual, to business, to the nation.

In this lesson you will learn to sort those benefits into their three tiers and defend each one. You will see how insurance manufactures the confidence to trade and to borrow, how the premiums of millions are pooled into long-term investment funds, and how a healthy insurance market feeds employment and national development. These are the marks WAEC hands out almost every year to candidates who can go beyond a bare list.

Doelstellingen

  1. Explain the benefits of insurance to the individual, the business and the nation
  2. Describe how insurance promotes business confidence, credit and continuity of trade
  3. Explain how insurance mobilises savings into long-term investment funds
  4. Evaluate the contribution of insurance to employment and to national economic development

Lesnotitie

Ask a market woman in Aba why insurance matters and she will tell you it pays when her shop burns. She is right, but she has named only the first and smallest of its benefits. The premium she pays does not sit idle in a vault. It joins the premiums of hundreds of thousands of others, and that great pool of money lets banks lend against insured collateral, lets a manufacturer reopen after a disaster instead of closing for good, employs an army of agents and clerks, and is invested in bonds that build power stations and roads. WAEC does not want a list of four words. It wants you to trace that benefit outward through three tiers, from one person to the whole economy, and to justify each step.

Lesevaluatie

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  1. Which of the following is a benefit of insurance to the individual? A. Provision of employment for actuaries B. Generation of foreign exchange C. Peace of mind D. Investment of funds in government bonds Answer: C
  2. Insurance is said to provide a basis for credit because: A. Insurers lend money directly to traders B. A policy can be assigned to a bank as security for a loan C. Premiums are refunded when no loss occurs D. Insurers guarantee that businesses will make a profit Answer: B
  3. An insurer collects premium income of 6,000,000,000 naira and holds 30% as investable funds. How much is available for investment? A. 1,200,000,000 naira B. 1,800,000,000 naira C. 2,000,000,000 naira D. 3,000,000,000 naira Answer: B
  4. The mobilisation of savings by insurers refers to: A. Paying claims promptly to policyholders B. Charging an equitable premium for each risk C. Gathering many small premiums into a large investment pool D. Transferring risk from the insured to the insurer Answer: C
  5. Which of the following is mainly a benefit of insurance to the national economy? A. Savings through an endowment policy B. Provision of employment and capital for development C. Reduction of a family's anxiety after a death D. Continuity of a single trader's business Answer: B

Aanbevolen Boeken

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ondertitel: Thirteenth edition
Uitgever: Pearson
Jaar: 2016
ISBN: 978-0-13-408257-8
Beschrijving: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ondertitel: Tenth edition
Uitgever: Wiley
Jaar: 2008
ISBN: 978-0-470-08753-4
Beschrijving: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ondertitel: Second edition
Uitgever: Himalaya Publishing House
Jaar: 2017
ISBN: 978-93-5097-079-9
Beschrijving: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Eerdere Vragen

Benieuwd hoe eerdere vragen over dit onderwerp eruitzien? Hier zijn een aantal vragen over Benefits Of Insurance van voorgaande jaren.

WAEC SSCE - Insurance - 2018

Vraag 1 Verslag

(a) Outline three features of life assurance.

(b) State three benefits each of life assurance to the;
(i) individuals
(ii) government 
 

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