Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.
Though human life cannot be valued, a monetary sum could be determined based on the loss of income in future years. Hence, in life insurance, the Sum Assured ( or the amount guaranteed to be paid in the event of a loss) is by way of a ‘benefit’. Life Insurance products provide a definite amount of money in case the life insured dies during the term of the policy or becomes disabled on account of an accident.
» To ensure that your immediate family has some financial support in the event of your demise
» To finance your children’s education and other needs
» To have a savings plan for the future so that you have a constant source of income after retirement
» To ensure that you have extra income when your earnings are reduced due to serious illness
» To provide for other financial contingencies and life style requirements