WHAT IS INSURANCE

Every year, billions of dollars is spent on life insurance. In today's world, families are buying more life insurance that ever before. The demand for insurance has really made the cost for insurance to skyrocket. Since life insurance is needed by almost every family, the request for life insurance will go on to rise.Obviously, to some individuals, live insurance is a priority over other insurance like auto insurance, property insurance, etc. But what surprises me most is that the normal insurance holder is not aware of how the insurance policy works. Probably, because insurance policies uses terms that are not familiar to the average person who needs insurance. This not withstanding, millions of people keep on buying insurance. Many are aware of the importance of life insurance. We all need life insurance because of the uncertainty of life. We can not really predict what will happen in the next moment.The basic truth about life insurance is that it can not insure a person against death but it can protect dependents of a death person against some financial losses resulting from the death of a bread winner in a family. Life insurance will make certain that the dependents of a dead person don't undergo much loss. The term life insurance doesn't warrant that the insurance will cover one for a life time. Life insurance is similar to car insurance. The usual term policy can be five or ten years or more depending on the choice of an single. If the insured person dies after the term is up, his family gets nothing.