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Why Life Insurance is necessary? And it’s benefits:

Need:

A human being is priceless asset and heavy income generating machine. But there are pros and cons in every field. That’s why, losses may be occur which can be covered

by the life insurance. There are two ways of loss income:

1. 1.Loss of income
2. 2.Loss of income after retirement

1 - Loss of income

  Ways of losses may be:

• Unexpected/ pre-mature death of the bread winner
• Sickness/ critical illness
• Disability due to accident

Anyone of these excepting death may or may not occur in our daily life. Insurance cover 2 points which are basic certainties of life, namely Risk of dying too early and the risk of living too long.
Obviously death is ultimate truth. Good explanation may be that, death is a certain thing but timing is not. Many cases of premature deaths refer to really hardships of their family left. Adequate life insurance can cover the huge loss of money and theirs should not be any kind of tensions due to shortage of cash. This thing surely provides financial relief in the periods of adjustment of bearing death of a person. Hence it is necessary for families to be insured the head of house.

2 - Loss of income after retirement:

If a person have a jungle with full of money then it will also will be eliminate in any day only if it is not be used. But, after retirement of family head, there are many financial crises arises which can be counter by the life insurance. If illness increases due to increase in age, their time then unexpected and regular medical expenses will be increase.
Life insurance means of independence in old age of people or at least, assistance to the end. In countries of increasing population of the old people will have important factor of the life insurance.
In developed countries like Britain, Germany or America, aged people are supported by the government as noble action. Where dependent people on state increases,
the greater will be the obligation on successive governments to provide higher old-age pension benefits with a consequent increase on younger generations.
The risk of Dying too early (in concept of accumulation of wealth) can be covered by the term ‘’Insurance Cover’’ after the effective analysis about the need of the client. The sum assured should be limited up to the human life value of the insured person and not the higher. This process and other all formalities are studied in the portfolio subjects and risk management field.
However, definition of risk management is here:
‘’The evaluation and forecasting of all the possible financial risks involve together with the identification of processes to avoid or diminish the impact.’’
Risk management is being explained in the context of the life insurance.
Now is portfolio will be defined:
‘’ Portfolio is the range of investment held by the any organization or a person. ‘’
Necessary of life insurance has been explained in detail.