What is the logic of Life insurance?

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected.

Insurance is not for the person who passes away, it for those who survive. It is extremely important that every person cover his risks so that his life, or in case of any eventuality, his family is lifestyle does not undergo any drastic change. It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his demise. Thus, the need for proper insurance.