International Styles

Business Uses of Life Insurance

So-called "business" or "commercial" life insurance has assumed large proportions only within the present decade. While the primary purpose of life insurance is to protect the family against the loss of the income-producing capacity of the breadwinner, it is becoming clear that the business enterprises of the country likewise have, need of protection against the loss of the valuable lives that give them vitality and success. During the last few years the business world seems to have discovered this fact, and as a result an enormous amount of insurance has been written on the lives of business men who have had in mind chiefly the stabilizing of their business through the establishment of better credit relations and the procurement of protection against the loss through death of those most valuable to its success. So large is the volume of business insurance becoming, and so rapid is its increase that there is good reason to believe, as one writer on the subject recently stated, that "the time is fast coming when the life insurance policy will be almost as integral a part of corporate and copartnership structure as are the charter, the bond, the stock certificate, and the articles of copartnership". The business uses of life insurance afford a boundless field for study and thought, because there are few men, indeed, who do not at some time face a business situation, the solution of which will be made simpler and less hazardous through the medium of some kind of life insurance.

Sections in Chapter 3.

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