Premature Death
Meaning of Premature Death
Premature death can be defined as the death of a family head with outstanding unfulfilled financial obligations, such as dependents to support, children to educate, and a mortgage to pay off. Premature death can cause serious financial problems for the surviving family members because their share of the deceased family head’s future earnings is lost forever. If replacement income from other sources is inadequate, or if the accumulated financial assets available to the family are also inadequate, the surviving family members will be exposed to great economic insecurity.
Costs of Premature Death
Certain costs are associated with premature death. First, the family’s share of the deceased breadwinner’s ...
Get Principles of Risk Management and Insurance, 13th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
