In Life Insurance we offer covers to protect the individual against of the
"dying too early or living too long".
Each individual has got a certain financial value attached to his life
in the form of his earning potential.
If he dies at a young age or during the time when he had an earning
potential his family suffers a financial loss in the form of loss of his
A lot of his obligations towards the family remain unfulfilled due to his
This is called the Risk of Dying too early and it can be protected against
by taking life insurance coverage.
Every individual plans his life & his sources of income to the best
of his ability taking into account his life expectancy.
Sometimes, despite the best of planning the individual is not able to
provide for contingencies such as serious / chronic / prolonged illness for
himself or his spouse which results in all the planning going haywire.
If a person survives beyond his expected age his planned sources of income
could diminish or become inadequate due to a variety of reasons.
This could result in his not having money at the time when he needs it most
and is not in a position to go and earn the same.
We call this the risk of living too long and protect against the same by
taking whole life insurance policies where withdrawals are possible as
& when required or by taking Pension policies or annuities.