What is Life Insurance

What is Life Insurance

Guys Welcome to Insurance Series Episode 2, today we are learning “What is Life Insurance”. Life insurance is just a RISK MANAGEMENT or Risk Transfer Mechanism. We transfer the risks of families who can’t afford it, to insurance companies who can afford it. I remember in one of my meetings with the client, his age was 50 years. I said to him that at your age one of Every 100 people will die this year. Insurance companies do not care if you are the one who will die, because 99% are paying the premium, their loss is only 1% but if you are the one who lost for your families Is 100%.

Objection about insurance:

Many people say that they do not believe in insurance. They should not, because insurance is not A Religion.

Example about “What is Life Insurance”

Mr Ali is around 35 years old. He is married and has one kid as well. Ali is doing the job and is the only Earner of his family. He does not have any other source of income. He is responsible for paying his kid’s school fees, utility bills, house rent, kitchen expenses, credit card bills,s and installment of his car. Imagine for a moment, if Ali died then who would bear all the above expenses? These expenses are the risk Of his family. So transferring that risk to the insurance company is “LIFE INSURANCE“.

Real Life Example

Moreover, I remember, one day I was sitting in the branch where we sell Life Insurance. One lady with her son entered the branch. I greet them. I offered them a cup of tea, and during my discussion, I came to know that his son was the only earning hand. His son was doing business and could afford a premium. I shared insurance information with them. In short, They agreed to buy an insurance policy for her son.

So, After 3 months that lady entered the branch and came to me straight away. The moment she sits in front of me, She starts weeping. She told me that her son died in a road accident. How life is uncertain. Luckily he was insured and his family received financial support that was agreed upon at the time of the Insurance policy.

Watch the Video Tutorial on What is Life Insurance in Hindi / Urdu

Conclusion:

So, Life is full of uncertainties, I am sure all of you must have understood the basics of What is Life Insurance. Stay tuned with us for more Episodes of the Insurance Series. And also visit our YouTube Channel for other informative and Sales Training Videos.