LIFE INSURANCE is an arrangement through which a person can plan for the continuation of income when uncertainties and certainties (i.e.) illness or Accident and death or old age disrupt or destroy his ability to earn his livelihood. Therefore the Insurance is
- The business of insurance is related to protection of human life, human created assets, human disability and business liabilities possessed by human beings which have a definite value, and
- Assets and human life generate benefit and income for the owner and his/her family members, and
- Loss of assets / human life for any reason stops the benefits and income to the owner and family members respectively, and
- Results in falling of living standards in the family, quality of life and future growth of the associated family members, and
- Insurance is a mechanism that helps to reduce such adverse consequences through pooling, spreading and sharing of risk. Thus life insurance business is complimentary to the Government efforts in social management.
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