A Starter for Life Insurance

A Starter for Life Insurance
A Starter for Life Insurance

Insurance is anything which provides protection and assurance against any loss or untoward situation. Insurance can be of many kinds starting from worldly things to life of an individual. Insurance is offered by a company which targets the individuals and it is then written down in the form of policy and agreement which is agreed upon by both the parties. Two parties which are involved in this process are insurance underwriter and the client or policy holder. Life insurance is an official contract signed between the client and the insurance underwriter for the purpose that if client dies, a sum of money will be paid to his/her beneficiaries whom he had nominated in his/her life through regular payment of money to insurance company.

It is an official and legal contract which clearly states the client’s present and past health condition along with other severe health risks which client is having. This contract can expire after pre decided number of years or it can also be in the form of lifetime. If the contract is for certain number of years, client will get the benefit after the expiry of said contract. If the insurance agreement is for lifetime, it will remain active until the insured dies or cancels the policy or stop paying his regular payments to the company.

Target Audience

Target audience for life insurance varies in number of ways. Some of them are listed below: –

  • Parents with children can buy insurance for their children. It will help them financially if the parent die and their children will be able to bear the financial loss in the form of payment, they will get from the insurance company.
  • Individuals who plan to own a property together can get life insurance. Even the married couples who wants to own a house together can have their lives insured so that if one dies, other will be able to pay the loans. It helps in getting the property together without any thought of future payments.
  • CEO of companies get life insurance for themselves so that if the die their company should be able to bear the loss. In this way financial problems faced by the company will be minimized.

Working Principle of Life Insurance

Death gratuity or benefit is the foremost thing in any life insurance policy. It is the benefit which is handed over to the beneficiaries nominated by the insurer during his life. It is in the form of money which insurance companies pays to the nominees of the client.

Second important thing in insurance policy is the premium which insurer pays to the company. It is the amount which is mutually agreed upon between the company and the client right at the start of the agreement. This amount is pre decided and is paid by the insurer at the start of the contract and then in the form of installments.

Categories of Life Insurance

Some of the types of life insurance are listed below: –

  • Term Life – It is the type of insurance which remains valid for the certain term. It can be in the form of 5 years 10 years or even more.
  • Level Term – The form of life insurance in which same amount is paid by the client every year.
  • Increasing Term – A form of insurance in which installments or premiums are lower when the client is younger and it gradually increases when the insurer gets old.

  • Permanent – which remains active until the client dies.


No one has ever come in this world with life assurance. No one knows when he will leave the world or for how long or how many years he will stay here. These worldly trends developed by the humans for themselves provides some sort of relief and satisfaction in case of sudden death. Today in this world, life is surrounded by various threats. Covid-19 is case in hand. In such scenarios life insurance pays a lot and provides a balance in sustaining the loss caused by the deaths of loved ones.

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