A human life possesses many values, most of them irreplaceable and not conducive to measurement. These values are founded on religious, moral, and social relationships. From a religious standpoint, for example, human life is regarded as immortal and endowed with a value beyond the comprehension of mortal man. In a person�s relationship with other human beings, a set of emotional and sentimental attachments is created that cannot be measured in monetary terms or supplanted by material things. A human life may be capable of artistic achievements that contribute in a unique way to the culture of a society.

Such values, however, are not the foundation of life insurance. Although not oblivious to these values�in fact, the life insurance transaction has strong moral and social overtones life insurance is concerned with the economic value of a human life, which is derived from its earning capacity and the financial dependence of other lives on that earning capacity. Since the economic value may arise out of either a family or a business relationship, it seems advisable to discuss the functions of life insurance under two headings: family purposes and business purposes.