Economic Justification of Life Insurance

We must all die, but the time of death is uncertian. If the breakwinner dies prematurely, it will financially disturb the whole depended fimaly members. life INsurance policy is that pays a stated sum to a named beneficiary and is not a contrat of indemnity. The insured evnt is the uncertainly od the time of death. If the insurance earns an income and other dependent on that earning capacity for at least part of teir financial support, the purchase of the life injsurance is breakwinner dies prematurely without standing financial obligations and dependents to support it may rsult in financial insecurity for the serviving dependents. Life insurance can be sued to restore the family's share of the income of decreased breadwinner.