Risk Management: Managing Life Cycle Risks
Learn about life cycle risks and how age, health, employment, and environment can affect these risks significantly.Publisher: Saylor Academy
CertificationView course modules
There are three main classes of risks associated with the human life cycle: premature death, longevity, and wellbeing. This course starts by outlining the different ways mortality risk can negatively impact one's life. You will learn how mortality tables and life expectancy tables are used for assessing the probability of premature death. You will then study the role of interest rates in retirement planning, and discuss how health risks and medical costs form major parts of life cycle risk.
You will then study the main issues and global trends regarding social security programs and learn how social security has moved from fully funded to pay-as-you-go. This course will also discuss the difference in benefits between early and late retirees. You will also learn why extended life expectancy and lower birth rates can cause a funding burden. You will then study why the concept of pooling is critical to life insurance, and examine the difference between the reserve and face amount of a life insurance policy.
Individuals face a lot of risks as they progress through their lives, so knowing how to manage some of the big ones can make a real difference to a person's wellbeing. By the end of this course, you will understand the most important risk management trends in the modern world and how they play a part in everyone's lives. This is truly useful knowledge that can make a real difference to your future. So, check out the course today and start learning something really valuable.
Module 1: Life Cycle Risks
Life Cycle Risks - Learning Outcomes
Introduction to Life Risk Factors
Older Age Risks
Age and Healthcare
Demographics and Cost
Life Cycle Risks - Lesson Summary
Module 2: Social Insurance
Social Insurance - Learning Outcomes
Introduction to Social Security
Social Security: Benefits and Entitlements
Funding Social Security
Social Insurance - Lesson Summary
Module 3: Life Insurance
Life Insurance - Learning Outcomes
About Life Insurance
Life Insurance Premiums
Life Insurance Plans
Life Policy Features
Riders and Waivers
Life Insurance - Lesson Summary
After completing this course you will be able to:
- Outline the various ways mortality risk can cause loss.
- Explain the use of mortality tables and life expectancy tables, in assessing the probability of premature death.
- Elucidate the risks associated with living past retirement age.
- Discuss health risks, global health statistics and medical costs as part of life cycle risk.
- Summarize the difference in benefits between early and late retirees.
- List the benefits that are applicable to survivors of deceased insured workers.
- Discuss how social security has moved from fully funded to pay-as-you-go.
- Explain why extended life expectancy and lower birth rates causes a funding burden.
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