Life Insurance fulfills the needs of a person –
Insurance has evolved as a process of safeguarding the interest of people from loss and uncertainty. It may be described as a social device to reduce or eliminate the risk of loss to life and property. Insurance provides financial coverage for unforeseen circumstances surrounding an event, such as fire, theft, or flooding. Life insurance is a long-term financial instrument that works as a financial backbone to fulfill your family members’ financial needs at important milestones even in your absence. The reason life insurance is such an important financial tool is that it is meant to protect your family and your dependents for financial support. But the immense significance of a life cover never hits home until it affects you on a personal level.
The needs of a person are divided into –
- Family needs,
- Old age needs,
- Re-adjustment needs,
- The cleanup needs,
- Special needs.
At the time of reduction in income whether by a loss of unemployment disability or death, adjustment in the standard of living of family is required. The life insurance helps to accumulate adequate funds. Anticipated endowment policy and guaranteed triple benefit policies are deemed to be a good substitute for old age needs.
- Need for education.
- Insurance needs for settlement of children.
- Clean up funds.
So, a person can fulfill the needs by purchasing the life insurance policies.