Outline and Briefly Explain the Different Classes of Life Insurance

question 65

Essay

Outline and briefly explain the different classes of life insurance as set out in the Life Insurance Act 1995.

---

Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow funds over a similar term, and with a similar security, to lease a comparable asset.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a particular point in time, showing assets, liabilities, and shareholders' equity.

Liability Reported

The documentation in financial accounting of any debts or financial obligations a company is responsible for.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a reference to measure lease liabilities under lease agreements.