ABSTRACT
This chapter proposes a new way of looking at insurance: as a means of wealth preservation. It examines the importance of human capital, the risks people face, and the ways to mitigate these risks. The chapter explores the range of insurance/assurance products and schemes now available, and considers how such policies can be used as possible investment and wealth preservation vehicles. The massive life insurance gap has prompted much academic interest in the factors that affect the demand for life insurance. In an article on the determinants of demand for life insurance in European countries in 2009, four social and economic variables have been identified: income, education, population and inflation. Individuals face many risks including premature death, ill health and unemployment, threatening the full realisation of human capital and the enjoyment of life. Greater knowledge about insurance and the potential benefits derived as well as a greater awareness of people's behavioural biases may help them make a more rational choice.
