Uses to an individual : 1. Insurance provides Security and Safety: The insurance provides safety and security against the loss on a particular event. In case of life insurance payment is made when death occurs or the term of insurance is expired. The loss to the family at a premature death and payment in old age are adequately provided by insurance. In other words, security against premature death and old age sufferings are provided by life insurance. 2. Insurance affords Peace of Mind: The security wish is the prime motivating factor. This is the wish which tends to stimulate to more work, if this wish is unsatisfied, it will create a tension which manifests itself to the individual in the form of an unpleasant reaction causing reduction in work. 5. Life Insurance encourages saving: The elements of protection and investment are present only in case of life insurance. In property insurance, only protection element exists. In most of the life policies elements of saving predominates. These policies combine the programs of insurance and savings.
If someone is dependent on you, like your children, then having insurance (whether health or life) is important. You'll never know what would happen and being prepared for whatever is always the best thing.
