2. Life insurance can be defined in many ways such as: Life Insurance is a “Risk sharing scheme on co-operative basis”. Life insurance provides financial security against unforeseen but named event.

3. There is a long and very interesting History of Evaluation of life Insurance. Very briefly, we may tell you that: “Plans for sharing risks were developed by merchant traders in the past hundreds of years, which with the passage of time developed into Social Sciences, Culture and Economy by life Insurance experts. Now life Insurance has developed into a well researched and practiced discipline providing risk coverage plans of various durations and types, with different payment and benefit options”.

4. Guilds and Churches: Formed Institutes to help their members to meet the expenses of ailment or death. These institutions were also developed on scientific lines and were converted into life insurance business with the passage of time. (Guild: Association of People). These too, were developed on Scientific lines and later formed on the basis of life insurance.

5. Mainly there are only two types of insurance: General Insurance Life Insurance Types of Life Insurance: Individual life Group life

6. It provides protection against the hazards of untimely death or living beyond a certain age. It provides Financial Assistance for specific needs like marriages/education of children, building a home in future, a vacation after retirement or other foreseeable personal and business needs. It creates a fund for obtaining loans/surrender values to meet unforeseen events/needs. It provides valuable return in the shape of bonuses.

7. It takes uncertainty out of one’s life by assuring that a specified sum of money will be available upon the happening of a certain event. It is an expression of love and affection for one’s near and dear ones by providing for their future needs in advance. It helps to keep business intact in case of a partner’s permanent separation i.e. death It helps business firms to secure the value of their key men. It provides expenses for treatment, surgery, and hospitalization; in case of accidents.

8. Like all other contracts, Life insurance is also a contract between the insurer, (State Life in our case) and the life insured. The legal requirements for its validity are: Offer: Proposal submitted by the proposer Consideration: The premium to be paid by the proposer/life insured Acceptance: Acceptance of risk by the insurer through issuance of an acceptance letter

10. Reduces the unemployment: Life Insurance offers unlimited opportunities for selling. Eliminates Poverty: This is proportionate to unemployment. The rate of poverty increases with unemployment. Similarly, the rate of poverty falls with employment. Flourishes prosperity: The reduction in unemployment and poverty brings prosperity.

11. Reduces Various Social Crimes: Nearly half of the various crimes are committed due to unemployment and poverty. Better employment opportunities help to reduce the rates of the unemployment and poverty in the society. Promotes the saving habits from an individual to the whole nation: Life Insurance business is a big economic mobilize. It mobilizes the savings of an individual into huge investment funds.

12. Family Protection With the purchase of life insurance policy, the policyholder ensures the protection of the education of his/her children and financial stability for his/her family. Saving and Investment Besides saving element, insurance is an attractive investment because State Life allocates 97.5% of its surplus to policyholders as Policy Bonus.

13. A Total Financial Package Life insurance not only ensures the security of a family but it also meet the financial needs of the family when required. Peace of Mind When a person purchase life Insurance Policy, he/she avails peace of mind.

14. TERM INSURANCE. Risk covers only, no maturity benefits. WHOLE LIFE INSURANCE. Matures at the age of 85 years, the policyholder gets Sum Assured and bonuses at the Maturity or the claimant gets the sum assured plus bonuses in the event of death of policy holder. ENDOWMENT INSURANCE. Matures at the expiry of the term selected by the policyholder who gets sum assured and bonuses at the Maturity or the beneficiary gets the sum assured plus bonuses in the event of death of policyholder.

15. FIELD MAN POWER DEVELOPMENT DEPARTMENT DEVELOPED BY: MOSHIN ABBAS & KASHIF HASHMI F.M.D P.O, KARACH