Life insurance is an agreement or a contract between an insurance policy holder and an insurer. where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).
Is Life Insurance Important?
Yes, it is. Life insurance is a way of supporting your family and also helping them cope financially when you die. Since death do comes unannounced. It is intended therefore, to provide support or help to your loved ones when they can’t rely on your salary or income any longer.
The money or fund paid by the company after your death, can be used to clear debts, pay off the mortgage or just cover everyday expenses like feeding and clothing etc.
Sometimes, the payout can also be used to pay your funeral if you haven’t set anything aside for that.
Should You be Concern about Life Insurance?
Well, in this case it depends. If you are a single person with no one depending on your income, then you probably don’t need life insurance.
However, if you are a family person or have others who depends on you (i.e Siblings or family Relatives) who may struggle to cope financially, then life insurance could offer the help they need at a very difficult time.
So, it is good to insure your life, at least for the benefit of your loved ones just in case you (die) or not there tomorrow.