Why not call "death insaurance"
2006-06-22 10:20:56 · 24 answers · asked by pilotsaregood 1 in Business & Finance ➔ Insurance
We call it life insurance because it is used to cover the insured income for life. It is really called "income protection" because your income can be replaced by the life insurance when you die. Therefore, your family will not have to be in financial stress when you die.
2006-06-22 17:33:35 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Insure can be defined as "cover: protect by insurance." The family is supposed to use that money to take care of the deceased funeral arrangements and debts. So, it's called life insurance because it covers the expenses to keep the life of the deceased alive or something.
2006-06-22 17:25:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You are only describing one kind of life insurance. There are other types that you can draw money from as they accumulate a cash value AND they pay off a sum to your beneficiaries when you die. It's not just death insurance!
It can be a good investment. Check it out!
2006-06-23 03:36:39 · answer #3 · answered by cavu_13 3 · 0⤊ 0⤋
Life insurance is meant for the family of the deceased. Example...Family of 4 with a father who supports the family, he dies...His life insurance would give the family money to continue to live comfortably untill they can get the finacial situation undercontoll. That is why they call it life insurance.
2006-06-22 17:26:10 · answer #4 · answered by tRuThBtOlD 5 · 0⤊ 0⤋
Salesmanship. Pure and simple. It puts a more positive spin on it.
Ironically, today we have the Bush Administration calling for repeal of what they refer to as the "Death Tax". This is just the Estate Tax in wolf's clothing. By calling it the Death Tax, they hope to create negative spin and get voters to oppose it.
2006-06-22 17:33:44 · answer #5 · answered by johnpublico 1 · 0⤊ 0⤋
It's spelled: insurance by the way.
It gives next of kin and dependents insurance in the event of death. The person's LIFE is insurance against DEATH OR DISMEMBERMENT, etc.
2006-06-22 17:24:55 · answer #6 · answered by kathy s 1 · 0⤊ 0⤋
Proceeds from a life insurance policy provide the beneficiary with sufficent funds to protect his/her lifestyle (and financial future) by not being burdened with a deceased family member's funeral expenses.
2006-06-22 17:29:29 · answer #7 · answered by napqueen 6 · 0⤊ 0⤋
Because it's insurance taken out on your life - you lose your life, the insurance pays up.
Just like car insurance - you lose your car due to accident or theft, the insurance pays up.
2006-06-22 17:24:11 · answer #8 · answered by weofui 2 · 0⤊ 0⤋
How many policies do you think they could sell if it was called death insurance. Insurance salesmen have the make a li\ving too!
2006-06-22 17:22:31 · answer #9 · answered by WEIRDRELATIVES 5 · 0⤊ 0⤋
Death insurance is SO negative.
2006-06-22 17:28:51 · answer #10 · answered by Anonymous 7 · 0⤊ 0⤋