Life insurance – additional information
A life insurance policy is a contract between a policy holder and an insurer, which provides that the insurer will pay out a lump sum to a designated beneficiary in the event of the policyholder’s premature death in exchange for a premium. Parents, homeowners and business owners are the groups most likely to take out a life insurance policy, because they want to provide for their family, ensure that the mortgage or creditors are paid off in the event of their death.
Life insurance is increasingly popular in Europe, though the market is dominated by non-European companies. Prudential Financial (U.S.) held the top position in the European life insurance market with a market value of 63.7 billion U.S. dollars as of March 2015. Old Mutual (South Africa) employed more people than any of the other life insurance companies in the European market.
In Spain, people seeking life insurance tend to take out their policy with a bank, rather than a life insurance company. The value of gross premiums earned by life insurance companies in Spain is set to reach 53.06 billion U.S. dollars by 2025.