Life Insurance
These companies design and sell contracts that provide a guaranteed tax-free financial payout to designated beneficiaries upon the death of the policyholder.
Why it exists
Life insurance exists to transfer mortality risk from households to large financial pools.
Why it’s necessary
It protects families, stabilizes intergenerational wealth, and underpins long-term savings products.
Key components
Policy underwriting
Actuarial science
Investment management of float
Claims processing & distribution
How to evaluate businesses
Premium growth, lapse rates, investment portfolio performance, capital adequacy, and expense ratios matter most. Float durability defines long-term returns.
How the industry could be improved
Faster digital underwriting, personalized pricing via health data (ethically governed), automated claims, and better integration with retirement planning platforms.