01.Core Concepts

Because premiums are paid in advance, they can be invested until needed to pay claims and expenses Investment income is extremely important in reducing the cost of insurance to policyowners and offsetting unfavorable underwriting experience Life insurance contracts are long-term; thus, safety of principal is a primary consideration In contrast to life insurance, property insurance contracts are short-term in nature, and claim payments can vary widely depending on catastrophic losses, inflation, medical costs, etc