What is the definition of insurance, how do we define life insurance under the same?
First of all, lets discuss what “insurance” means. Insurance is the transfer of risk of financial loss from an individual to a company which, for consideration, assumes that risk for a stated period of time against a stated peril(s) up to a stated amount. In other words, insurance is where the policyowner trade for a small loss (the premiums) for the insurance company’s promise to pay for a large, unknown loss. All the policyowners lose a little, but no one has to take the risk of losing everything. All insurance policies are contracts, which means nothing more than an agreement between two or more individuals or parties. If you ask yourself, what is your greatest asset? Without much thought, you would say that it is your bank, your car, or your house. If you answer anything besides “yourself,” your answer is wrong. Your earning ability is your greatest asset. Your ability to go to work and bring home a paycheck is your greatest asset. But you can’t go on with life without being expose
