Business Studies XII Content
Life Insurance Meaning
Life insurance is the mo important kind of insurance in which human life is insured for financial security of dependents. The life of an individual is important not only to himself, but other many people depend upon him. If he/she dies the problem may be created to his/ her dependants. Future is uncertain and human life is also uncertain. Thus, an individual may take leave from his world at any time so life insurance is most essential because it protects from such risk. The main objective of life insurance is to provide financial security to the insured person and his or her dependents from many kinds of risk such as death, old age, disability and so on.
The insured pays the premium in installment basis to the insurer instead of bearing any risk. If an inured person dies before the insured period, insurer pays insured amount to his family and if the insured person is alive at the end of the maturity period, she/he takes the amount himself/herself.