What is life insurance and why it is necessary for human life.. e.g. Why a person should have life insurance policy ?

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Life insurance provides financial protection for individuals and their families in the event of death.

Life insurance is a contract between an individual and an insurance company, where the individual pays regular premiums in exchange for a sum of money to be paid to their beneficiaries upon their death.
It provides financial security and peace of mind to the insured and their loved ones, ensuring that they are protected from financial hardships in case of unexpected death.
Life insurance can help cover funeral expenses, outstanding debts, mortgage payments, and provide income replacement for the family left behind.
It can also be used as an investment tool, with certain policies offering cash value accumulation over time.
Life insurance is particularly important for individuals with dependents, as it helps ensure their financial well-being and future stability.
Having life insurance can also provide a sense of relief and reduce stress, knowing that loved ones will be taken care of financially.
Life insurance policies can be tailored to meet specific needs and goals, such as term life insurance for temporary coverage or whole life insurance for lifelong protection.
Life insurance can also be used for estate planning purposes, allowing individuals to leave a financial legacy for their heirs.
Example: A person with a family and significant financial obligations, such as a mortgage or children's education expenses, should have a life insurance policy to safeguard their family's financial future.
Example: A business owner may have a key person life insurance policy to protect the company in case of the death of a key employee.
Example: Individuals with high net worth may use life insurance as a tool for estate planning and wealth transfer.

What is life insurance and why it is necessary for human life.. e.g. Why a person should have life insurance policy ?

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