Why do we need to buy insurance? We can see that nowadays many people are willing to pay thousands of dollars each month just to pay for so many types of insurances. What is actually an insurance? Would not it be the same as keeping our money in our own account? If not, that what differentiate them? These are the things that we first need to understand, before we actually talk about the life insurance.
Insurance is actually the ability to transfer certain risks. For example, we pay the insurance company to protect our car every month and then one day, our car was hit by another car and needed a lot of money to fix. The insurance company will then cover for these costs. Not only that, most of the car insurance also pay certain amount of money to help the driver if he is injured and in need of medical attention. As for the life insurance, this would be the perfect inheritance that one can leave for the loved ones. This will insure that they would be taken care of and live the future as they have dream because even when they lost the breadwinner of the family, the insurance will provide for their needs.