Importance of Life Insurance for a Family

Abstract

The research paper attempts to entail the study of importance of Life insurance for the family of an individual. The study involves all the areas where the family can have the advantage of availing all the benefits of the insurance policies. The study initially describes the meaning and importance of life insurance policies in one's life it describes that how employees can have the mind peace availing this insurance advantage that somebody is there to take care of his family. This ultimately brings mental peace to one's life and help in maintaining the psychological tension of human being. They study further describes the main characteristics of life insurance which ultimately results benefits for the family of that individual. It also explains the possibilities that life is not to live forever. One must need to get aware of the possibility of any eventuality in future. After retirement the earning capacity of a person reduces. Life insurance enables a person to enjoy peace of mind and a sense of security in his/her old age. There also lies a concept of Life insurance and Life Assurance which makes a difference in believing the idea of life insurance policies. Further, the study describes the life possibilities and how insurance would be helpful in not facing the sudden financial drawbacks. It explains that Life Insurance policies are more like a back cushion for one's family life.

Later the study is explaining the core part of the Thesis statement that life insurance is an asset for any family. This explanation of the thesis statement involves the core benefits the family can attain after the death of the owner. These benefits involve; Liquidity Benefits, Easily divisible amount, Predictable value, income tax free payment benefit, no link of value to market performance, Avoidance to probate, growth leverage benefit, subject to government oversight, living benefits, mortgage term assurance , long life protection, source of credit benefit and the benefits of health insurance. All of these benefits are individually explained with their beneficiary policies.

Importance of Life Insurance for a Family

Thesis statement

The thesis statement for this paper is that “Life Insurance is an asset for families.” It defines all the aspects through which insurance provide a sense of security in individuals mind for his/her family.

Introduction

Life Insurance is referred as a contract between an insurer and an insurance policy holder. In this contract, a promise made that the insurer will pay a sum of money to the insured person upon his death to a designated beneficiary. This payment is considered certain for the policy of life insurance. There lies no assurance of time when the event would happen therefore, life insurance is also called as 'Life Assurance'. It assures a security to your life and other's life when u faces a whole in the boat situation. It also gives risk coverage to the person's life. Life insurance is very important for a family as it provides mental satisfaction to individuals as well as families (Dinallo, ...