Consider a life insurance contract designed for independent workers who have little salary and are afraid to lose their retirement opportunity: for example, they will always be obliged to work even after age 64 in order to get money. So the proposed insurance product will help them to not lose this retirement opportunity.
We all know that both insurer and the insured face a lot of risks. For example
(1) the incapability of the insured to pay his monthly premiums;
(2) the insurer bankruptcy;
(3) a fault declaration of the insured when signing the contract;
(4) the actual economic situation (due to covid-19) which render people afraid to invest their money..
I would like to discover more about real/important risks in the aforementioned life insurance contract. I would love to take your opinions about:
- What are the risks that the insurer face when selling the product?
- What are the risks that the insured face by signing an insurance contract?
Any help will be very appreciated.