How Does Life Insurance Help Individuals?

Life insurance is important for every individual to protect against risk resulting from different events in his/her life. Life insurance is a saving in the long term and covers life risk thus comes to rescue the dependents of the deceased financially. Life insurance helps thus:

1. To replace income for your dependents: If anybody depended on your income then suddenly you may die by an uncertain event then the life insurance policy replace income for your dependents.
   For example you are the earner and your parents are dependent on your income. Suddenly you may die due to an event like accident, or ill health. If you have life insurance, the insurance firm covers such by paying an amount of money to your parents.
2. To Pay final expenses: Life insurance provides final expenses for you after your death. That is, it covers funeral and burial expenses, due debts, some medical expenses that are not covered by the health insurance.
3. It creates inheritance to your heirs: Even if you do not have any assets to pass to your heirs then you can create some asset for them by taking life insurance and naming them as a beneficiary for the policy.
4. Source of savings: Some life insurance policies act as source of saving. Some types of policies create cash value that, if they not pay death benefits, they can be borrowed or withdrawn at the policy holder request. Examples for such policies are whole life insurances, permanent life insurances.

In all the above ways, insurance can help individuals.