Life insurance is assurance for you and your family for securing their future and well being. Life insurance is purchased from a life insurance company which will provide the family of the issuer with some monetary rewards – if the issuer were to die.
Life insurance is usually purchased for a number of reasons. The main one of these reasons being the death of the person who is earning the main wage for a household. In these times of hardship and financial distress, these policies provide comfort and relief.
The cost associated with insurance depends on the issuer's age, how healthy or fit he/she is and the nature of his/her work or occupation. It is easy to then understand why premium paid on policy for a non smoking 20 year old male in excellent health will be lower than the premium a 70 year old male smoker will have to pay on his policy. Similarly, a coal miner's policy will be more expensive than a school teacher's.