• NEW - Extensive integration of economic and financial theory and international comparisons.
  • Helps students achieve a deeper understanding of the effects of ongoing changes within the life and health insurance industry - and of the industry as a whole.
• NEW - Stronger global orientation - Offers more international comparisons with international practices.
  • Enlightens students - giving them a broad and worldly knowledge base that will help them understand the differing approaches foreign life insurance companies take in responding to their clients' perceived needs.
• NEW - Financial management perspective has been adopted into the text.
  • Helps students understand how life and health insurance products fit into a broad framework of financial planning.
• NEW - Tax treatment - Offers expanded and updated treatment of life and health insurance, examining such areas as estate planning, retirement planning, and the business uses of life and health insurance.
  • Exposes students to the unique tax advantages and issues pertaining to a wide variety of insurance planning, and gives students an inside look at the most current tax strategies.
• NEW - Health care - Revised and expanded, the treatment on health care reflects the growth of managed care and its impact on traditional health care programs.
  • Keeps students abreast of the rapidly changing managed care environment and its impact on the entire health care industry, including hospitals, physicians, and insurance companies.
• NEW - New developments - Examines the strong movement toward eliminating the traditional barriers between commercial banks, investment banks, and insurers.
  • Exposes students to the increasing competition between banks, brokerage firms, and insurance companies within the financial services industry.
• NEW - Marketing life and health insurance - Reflects both the search for and the experiment with new distribution systems, including the growing impact of the Internet.
  • Helps students understand the challenges facing today's insurance companies in distributing their products and services.
• Helpful suggestions on how health insurance products fit into a broad framework - Shows the roles health insurance products play in the insurance industry from contractual, cost, and performance viewpoints.
  • Familiarizes students with the most up-to-date products available in the marketplace and their different uses.
• A fully integrated, real-world examination - Supports material throughout with economic and financial theory with a solid conceptual and practical treatment of life and health insurance from the buyer's, company's and financial planner's point of view.
  • Provides students a full overview of the life insurance industry and process.
• Modern financial theory - Bases financial treatment of life insurer operations on modern financial theory.
  • Gives students cutting-edge coverage on the industry.
• Comprehensive units made for easy course customization - Presents a thorough and accurate treatment of life and health insurance that is logically organized into individual units of study (e.g., life insurance, health insurance, employee benefits, financial planning, etc.).
  • Allows the instructor to pick and choose topics that meet the needs of his or her particular course.
• A highly visual and accessible format - Contains many illustrations, graphs, and supporting examples, coupled with a clear writing style.
  • Stimulates students' interest and promotes a more meaningful understanding of the material.

This thirteenth edition is a major revision of its predecessors, the first of which was published by Solomon S. Huebner in 1915. The authors continue their emphasis on combining current information about the life and health insurance industry's products and their uses with careful consideration of the environment. We also continue to approach our presentation of life and health insurance simultaneously from the viewpoints of the buyer, the advisor, and the insurer. The financial services industry continues to undergo unprecedented change. To permit a deeper understanding of the industry and the effects of these changes on life and health insurance, we have strengthened our treatment of fundamentals by building more economic and financial theory into this edition. Although the basis of this edition remains U.S. practice, comparisons with international practices are presented throughout the volume. Because of the growing importance of health care financing, we have expanded our treatment of health insurance and changed this edition's title to reflect this fact. A financial management perspective has been adopted to explain how life and health insurance products fit into a broad framework of financial planning. In this context, these products have both unique advantages and some disadvantages. We have endeavored to present a forthright appraisal of them and to suggest how they may be evaluated from contractual, cost, and performance viewpoints. This edition devotes entire chapters to the tax treatment of life and health insurance, to estate planning, to retirement planning, and to the business uses of life and health insurance. We recognize that these areas change continuously, but exposure to the topics is important to students and practitioners. The chapters on health care have been significantly revised to reflect the growth of managed care and its impact on traditional health care programs. The rapidly aging U.S. population has moved insurer emphasis from protection to retirement products and focused the national debate over the future of Social Security and Medicare. All of these trends are reflected in this edition. Life insurer management and the environment within which it operates are dealt with in the later chapters of the book. The entry of banks into the life and health insurance field has opened a new major distribution system. These and other developments reflect the strong movement toward eliminating the traditional barriers among commercial banks, investment banks, and insurers. The chapter on marketing life and health insurance reflects both the search for and the experiment with new distribution systems, including the growing impact of the Internet. This edition provides a major effort to employ finance theory and concepts in understanding the management of risk by life and health insurers. In addition, the discussion of organization reflects the movement toward demutualizations and mutual holding companies as the need for capital has increased. The volume concludes with chapters on financial reporting and regulation and regulatory responses to the volatile financial environment. In sum, we have attempted to provide a comprehensive, unbiased treatise on individual and group life, health, and retirement products, their appropriate uses and taxation, how to evaluate these products and their supplier insurers, along with a thorough examination of life insurance company operations and regulation.

1. INTRODUCTION TO LIFE AND HEALTH INSURANCE.
   1. Economic Security and the Economics of Life and Health Insurance.
   2. Life and Health Insurance Pricing Fundamentals.
   3. The History and Importance of Life and Health Insurance.
2. TYPES, USES, AND EVALUATION OF LIFE AND HEALTH INSURANCE.
   Individual Life and Health Insurance Policies.
   4. Introduction to Life and Health Insurance Products.
   5. Whole Life Insurance Policies.
   6. Universal Life Insurance Policies.
   7. Health Insurance Policies.
   8. Annuities and Optional Benefits.
      Life and Health Insurance Evaluation.
   9. Life and Health Insurance Contracts: I.
   10. Life and Health Insurance Contracts: II.
   11. Insurance Advisor and Company Evaluation.
   12. Life Insurance Policy Evaluation.
       Uses of Life and Health Insurance in Personal and Business Planning.
   13. Life and Health Insurance Taxation.
   14. Life and Health Insurance in Personal Financial Planning.
   15. Estate Planning.
   16. Retirement Planning.
   17. Business Planning.
       Government and Employee Benefit Plans.
   18. Group Insurance.
   19. Health Care Plans: I.
   20. Health Care Plans: II.
   21. Retirement Plans.
   22. Social Insurance.
3. THE MANAGEMENT, OPERATION, AND REGULATION OF LIFE INSURANCE COMPANIES.
   Overview of Life Insurance Management and Operation.
   23. Life Insurance Company Organization and Management.
   24. Marketing Life and Health Insurance.
       Underwriting Life and Health Insurance.
   25. Life and Health Insurance Underwriting: I.
   26. Life and Health Insurance Underwriting: II.
       Pricing Life and Health Insurance.
   27. Life and Health Insurance Actuarial Principles.
   28. Net Premiums.
   29. Life Insurance Reserves and Cash Values.
   30. Gross-Premium Rate Structures and Nonguaranteed Policy Elements.
   31. The Pricing of Health Insurance.
       Financial Management and Reporting.
   32. Life Insurer Financial Management: I.
   33. Life Insurer Financial Management: II.
   34. Life Insurer Financial Reporting.
       Regulation and Taxation.
   35. Regulation and Taxation of Life and Health Insurance.