Is insurance necessary for a businessman

A businessman without insurance is like a ship without a rudder. It lacks direction and can be easily damaged by any unforeseen event. Insurance is necessary for the businessman to protect his company from risks such as liability, property, casualty, and health. Businesses need insurance to protect themselves from unforeseen events that could cause them financial loss.

Why Life Insurance is Important?

Life insurance is a financial service that pays a lump sum of money to the beneficiary in case of the insured individual’s death. Life insurance protects your loved ones in case of your death and also provides for them financially. Life insurance is one of the most important financial planning tools available in the market. In this pandemic situation, It is necessary to insure with a life insurance policy.

Why Life Insurance is not a Contract of Indemnity?

General insurance and Health insurance policies are indemnity based while the life insurance policies are benefit policies. The principle of indemnity states that the insurance company replaces the damages so that they are in the same state just prior to the occurrence of the loss. In case of life insurance policies it is not possible for the life insurance companies to repair or replace the insured after his/her death i.e. the insurance company cannot bring back the insured customer to life after his/her death. It is not possible to calculate the life value of a person and settle only that amount after his/her death; hence the life insurance policies are not contracts of indemnity.

Why should I Buy a Term Policy?

Life is unstable and we need a backup plan to provide financial security to our family. In case of sudden demise, the family might face financial hardships due to the death of the earning member of the family. A term policy covers the children's education costs, clears the outstanding loans, and provides income to the family of the policyholder in case of the untimely demise of the insured.

Why Term Insurance Is Important?

Term insurance provides an affordable way to help financially protect your family. The insurance company promises to cover the life of the insured in return for a nominal amount known as “Premium” and for a period of time known as the term. In most of the term life insurance policies, claims are paid to the nominee in case of death of the policyholder whereas few term insurance policies provide maturity benefit to the insured customers in case of survival till the end of the policy period.

Why Life Insurance Is Necessary?

Yes, it is important because it helps an individual and their family’s financial struggles and lets you live happy even after your demise. Your individual life insurance follows you when you retire and you are no longer insured by your employer.