Every responsible person is obligated to purchase a pure protection plan for himself and his family in this era of uncertain times. Traditionally, insurance was only meant to be a protection which family members reap in case of an unfortunate demise of the earning member of that family. So to indemnify the financial loss to the family was the only intent of the life insurance plan. Such plans are known as the term Insurance plans.
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedgeagainst the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraisingand controlling risk, has evolved as a discrete field of study and practice.