Assurance
Categories: Insurance
Generally, we buy insurance in case something bad happens. But what if that bad thing is guaranteed to happen? There's a product for that too. It's called "assurance."
Life insurance represents the most common form of assurance. The insurance company knows its life insurance client will eventually die - meaning the firm will eventually have to pay out. The firm's goal is to price the insurance properly, so that the amount it receives in premiums more than makes up for its inescapable payout.
