After the death of insured, his/her nominee receives the insured amount. In most of the life policies elements of saving predominates. Life insurance provides for your family or some other named beneficiaries on your death. It can be said that the insurance company or the insurer are providing a service to the policy-holder. Life insurance is a contract between the policyholder and the insurance company. Life insurance is an excellent and inexpensive way to help your favorite charity with tax-free proceeds. Insurance has become an integral aspect in everyone’s life today. It is important to note that life insurance is a future-oriented activity. "Acts of God," for insurance purposes, are defined as events that occur through natural causes and could not be avoided through the use of caution and … One of the basic factors in life and health premiums is the interest earned by the insurance company on the premiums it receives and subsequently invests. Hence, the insurance company cannot guarantee against death or prevent death but can agree to pay a stipulated sum in the event of death happening at an earlier date than agreed upon. Life Insurance - Their Characteristics Importance and Actuality On The Romanian ... there cannot be a real, long-term and sustained progress, without insurance. Fire Insurance: Definition, Functions, Importance. This insurance will also replace your family income when resources are less so they can maintain their quality of life. As simple as that! Here are a few reasons why you must insure yourself and your loved ones: This is often the reason why cars are such an important part to get a cheap insurance plan. It's a good idea to review your need for life insurance whenever a major life event occurs—a new home, marriage, a new child, or a new job. Whole life insurance policy:Whole life insurance policy is defined as an insurance in which the insured person pays the premium in the installment basis for full duration of his/her life. Two general types are available: term insurance Life insurance with a death benefit but no accumulated savings. As we move through life, find a partner, raise a family, and maybe start a business, the importance of insurance in a long term plan increases. The concept of insurance developed from the need to minimize the adverse effects of … Life insurance also safeguards the interest of people who have diminishing incomes with advancing age, people who meet with accidents or for retired people. Your individual life insurance follows you when you retire and you are no longer insured by your employer. Life Insurance. Life insurance is different from contract of indemnity. 5. Insurance provides financial protection to business assets and properties against the risk of theft, fire accidents or any other natural … Your free stock is waiting for you! The non-life insurance provides financial support to people or companies and helps them to overcome the losses. 3 Types of Risk in Insurance are Financial and Non-Financial Risks, Pure and Speculative Risks, and Fundamental and Particular Risks. There are numerous policies available and you can choose the policy that will best suit your requirements. More importantly, however, is the need to generate awareness at the moment when the need for life insurance is greatest. What Is the Importance of Having Insurance?. Life insurance is scary thing to think about but it is an essential part of financial planning. A liability insurance policy requires the insurer not only to pay money on behalf of the insured to a third party but also to provide legal and investigative services needed when the event insured against occurs. The process of insurance has evolved to safeguard the interests of people from uncertainty by providing certainty of payment at a given contingency. Hello, friends In today’s article, we will talk about what is Insurance, Introduction of insurance. Life Insurance encourages saving: The elements of protection and investment are present only in case of life insurance. Additionally, the cost and accessibility of life insurance can vary depending on your age and health: Generally speaking, term life insurance is often less expensive when you are younger and healthier, and the premiums generally increase with age. Our study confirmed that certain life events are reliable predictors of the likelihood to purchase life insurance. 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