What is Life Insurance?

What is Life Insurance?

A contract of life assurance is an agreement between two parties, the insurer and the life to be assured. The first party (the insurer) agrees to pay a given sum on the occurrence of a particular event contingent upon the duration of human life (that of the life assured) in consideration of immediate payment of a certain sum (Single premium) or equivalent periodical payments (Regular premiums) by the second party (life Assured) to the contract.

Life assured eliminates the financial risk that he faces in his day to day life by providing the life risk covering for the following two major hazards.

• Loss arising in the family on untimely death of the sole bread winner.
• Provision for the old age by providing long term retirement plans.

This will ensure the further financial stability of a person by ensuring the best returns by way of investment protection