is a type of management of risk which is used to prevent the risk of the uncertain future. In this, the exchange of payment in the form of money is done to shift the risk from one person or entity to another in case of a loss. In this cycle, the insured, who is also the policy holder buys the Life insurance policy from the company, or the insurer in respect with the payment of a prior fixed amount of money at regular intervals and if there is a death of the person the company, i.e. the insurer will pay a lump sum amount to the family of the insured, which is mentioned in the policy. This reduces the uncertainty and risk for the family members and reduces the financial burden off them.
These life Insurance policies are official and legal contracts which cover various aspects and terms of the policy and their limitations. Thus it becomes important for the person to choose the right one.
There are various contracts and policies in these life insurance policies like investment policies and protection policies.
In Australia, insurance is a huge industry and a very major source of finance in private as well as public sector and adds significantly to the growth of the economy. Many companies like AXA, Asteron, Aviva, MLC are some major players in this segment and have their life insurance policies framed according to their perspective clients’ preferences and needs. The consumer has to understand these policies before taking and choosing which will best suit him. There are lots of options available with companies these days to match up with the consumer and his preferences. One should always look for main points such as the amount of the insurance or the coverage, monthly or annual payments, maturity period and many more.
Life insurance has thus become one of the most important assets for all of the people, irrespective of age, gender or status and is very helpful in case of emergency.
By taking a proper life insurance policy, the insured can get a mental satisfaction and as we say ‘Peace of mind’ as it will reduce the future problems and risks.