InvestorQ : Why is life insurance needed?
Swapnil Sarang made post

Why is life insurance needed?

simran Kaur answered.
3 years ago

Life insurance is a financial cover, or a contract wherein an insurance provider undertakes to provide financial coverage to an individual in exchange for a payment over regular periods of time called a premium.

Life insurance is needed to ensure that one’s immediate family has some financial support in the event of any untoward incident. The various times life insurance comes in handy after one’s demise or serious accident is:

- To finance your children’s education and other needs

- To have a savings plan for the future so that you and your family have a constant source of income after retirement

- To ensure that you have extra income when your earnings are reduced due to serious illness or accident

- To provide for other financial contingencies and life style requirements