Importance of life insurance in humans with special reference to LIC and Others

Life is open to risks and uncertainties of so many kinds. There are risks of death and disability for human life, and burglary risk for property and so on. In case of occurrence of any of the events, the individuals or organization may suffer a great loss. In order to minimize the impact of such uncertainties, there is a need for ‘insurance ’. So insurance is a contract between two parties, whereby one party agrees to indemnify (cover) the loss suffered by the other party for a consideration of some money, known as premium.