LIFE INSURANCE IS A FINANCIAL COVER FOR A CONTINGENCY LINKED WITH
HUMAN LIFE, LIKE DEATH, DISABILITY, ACCIDENT, RETIREMENT ETC. HUMAN LIFE IS
SUBJECT TO RISKS OF DEATH AND DISABILITY DUE TO NATURAL AND ACCIDENTAL CAUSES.
WHEN HUMAN LIFE IS LOST OR A PERSON IS DISABLED PERMANENTLY OR TEMPORARILY,
THERE IS LOSS OF INCOME TO THE HOUSEHOLD.
THOUGH
HUMAN LIFE CANNOT BE VALUED, A MONETARY SUM COULD BE DETERMINED BASED ON THE
LOSS OF INCOME IN FUTURE YEARS. HENCE, IN LIFE INSURANCE, THE SUM ASSURED (OR
THE AMOUNT GUARANTEED TO BE PAID IN THE EVENT OF A LOSS) IS BY WAY OF A
'BENEFIT'. LIFE INSURANCE PRODUCTS PROVIDE A DEFINITE AMOUNT OF MONEY IN CASE
THE LIFE INSURED DIES DURING THE TERM OF THE POLICY OR BECOMES DISABLED ON
ACCOUNT OF AN ACCIDENT.
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