NEED OF LIFE INSURANCE

In case of a human being, death is certain, but the time of death is uncertain. The person is insured, because of uncertainty about the time of his death. In the case of person who is terminally ill, the time of death is not uncertain, through not exactly know. It would soon. He cannot insure. Risks arise because there are needs to be fulfilled. The risks attached to early death arise because of need to maintain the family that is left behind. If there were no needs there would be no risks.

PURPOSE & NEED OF INSURANCE

This risk only means that there is a possibility of loss or damage. The damage may or may not happen. The earthquake may occur, but the building may not have been affected at all. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word possibility implies uncertainty. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against.

The term INSURANCE

The business of insurance is related to protection of economic value of asset. The asset would have created through the efforts of the owners. Every asset has a value. The asset is valuable to the owner, because he expects to get some benefit from it. Every asset is expected to last for a certain period of time during which it will provide the benefit. After that, the benefit may not available. For example there is a life-time for machine in a factory. The owner is aware of this and he can so manage his affairs that by the end of that period or life time, a substitute is made available. Thus, he makes sure that that the benefit is not lost.

It's me

Friends I am James Brown and I work for an insurance company for past three years. I have been a loyal person to my clients and I managed to explain about the benefits of insurance throughout my life. After a long struggle I managed to buy a domain online and write about the benefits of insurance to my friends. You can also know about my personal life in this blog.