Fund life & health insurance
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Since life insurance is a long-term product, it is essential for life insurer to generate quality investment.
Life Insurance is long term product and it is essential for the insurance to generate quality investment because this will be having a higher payouts and the insurance company should be looking for those persons who are less exposed to being paid and they will be providing absolute certainty of payment of the premium, hence, it will be providing the company with the chance of maximizing its rate of return because of the quality investment it will be having, when there would be an absolute certainty regarding payment of the premium and there would be a low probability of loss regarding those contracts then the company will be maximizing its value so it is essential for life insurance to generate quality investment.
The given statement is TRUE
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