Date of Award


Document Type


Degree Name

Master of Arts

Degree Discipline

Business Education


Theoretical Framework. The writer is using the savings and investment approach to the study of lapsed policies in Negro insurance companies in Houston, Texas* Since life insurance is a form of savings and investment, this approach appears to be most appropriate. Accordingly, savings and investments in any community must be equal.

If income is defined as the value created by the producers of output and savings as the excess of income over consumption, then savings must equal investment, for the output must be sold either to consumers or to other entrepreneurs. What is sold to entrepreneurs is their current investment. Hence current investment is the difference between total income..and consumption, which by definition is savings.

When an individual pays his insurance premium, he probably thinks of it as another bill, not realizing that he is actually saving and making an investment. The writer believes that the insurance-buying public is more "death conscious" than it is saving and investment conscious about life insurance. In support of that belief, the writer found that 90 percent of the policyholders used in this study gave death as their basic reason for procuring life insurance, while only 10 percent gave other reasons, such as educational purposes, protection of the family, collateral, and ready cash in ease of future needs. As a result of the prosecution of this study within the framework of economic theories such as the savings and investment approach, the writer believes that better relationship between the insurance companies end buying public will result and the problem of lapses may be solved more rationally.

Committee Chair/Advisor

George R. Woolfolk

Committee Member

Adam S. Arnold

Committee Member

Terry L. Brookins

Committee Member

Purvis M. Carter

Committee Member

L. A. Haughton


Prairie View Agricultural and Mechanical College


© 2021 Prairie View A & M University

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Date of Digitization


Contributing Institution

John B Coleman Library

City of Publication

Prairie View





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