What is Life Insurance?

Life Insurance is a tool for management of risks. The risks faced by the individuals are pooled together and thereby 

all the members of pool will share the losses suffered by a few individuals.

Life insurances started in Rome 1000 years B.C. In 1735, the first life insurance company was developed in America. As time passes, new and different insurance companies are being established.

Life Insurance is insurance for you and your family's peace of mind. It provides a family with financial support in the case of death of the breadwinner of the family. According to a life insurance policy, a fixed amount of money is paid to the insured or the beneficiary at the end of its term or upon the death of the insured. Life insurance also offers investment benefits. With an insurance policy, you can save for your old age, fund your child's education, save taxes and so on.

It is a wise decision to go for a life insurance policy. Lack of sufficient life insurance coverage when a loved one dies can have devastating consequences for a family. The loss of income following the breadwinner's death will cause the family immediate economic hardship and make it harder for them to realize future goals like paying for children's education. Whether you are married or not you may need life insurance to protect your partner or surviving family members. Unless you already have sufficient financial resources, your survivors will need insurance cover. A life insurance policy can be the basis of protection and financial stability after one's death. There can never be adequate compensation for the loss of a dear one. But, if the family is also left without sufficient money to meet basic needs, they will suffer more.