What is life insurance? Why is it necessary?
-
Media Baaji
- Thu, 30 October 2025
© Rabindra Lamichhane (Nabin)
What is life insurance? Why is this necessary?
Life Insurance is a financial plan that provides financial security related to human life. In simple terms, life insurance is a contract between an individual and an insurance company, in which the individual (insured) regularly saves a premium and the insurance company enters into a legal agreement to give a sum assured and bonus after the death of the insured or a certain period of time.
Why is life insurance necessary?
Life insurance is essential not only for death, but also for family financial security, savings, and future planning.
The main reasons are as follows:-
1. Financial protection of the family
– If the main earning member dies, the sum assured helps the family survive financially.
- Can be used for children's education, household expenses, and to pay off debts.
2. Savings & Investment
- Insurance plan is also a means of saving.
– Endowment or Money Back plans prepare funds for the future.
3. Risk Management
- Insurance helps in case of accident or serious illness.
– Insurance converts risk into “financial security”.
4. Tax Benefit
- You can get income tax rebate by investing in life insurance in Nepal.
5. Retirement Planning
– Long term insurance can be a source of income in old age.
6. Peace of Mind
- The feeling that your family is safe is a great satisfaction.
Note:- The writer is the Finance and Commerce Correspondent of Mediabaaji.com and Senior Business Officer of National Life Insurance Company Limited.
Express
Related News
Vice-Chancellor, Principal and Registrar resigned
Kathmandu. The top officials of Tribhuvan University, the country's oldest and largest educational institution, have collectively resigned from their posts.
Vice-Chancellor Prada Deepak Aryal, Principal Prada Khadg KC and Registrar Prada Ked...
Here is the foreign currency exchange rate today
Kathmandu. Nepal Rastra Bank has determined the foreign currency exchange rate for Wednesday. According to the National Bank, the buying rate of one US dollar has been fixed at 151 rupees 28 paisa and the selling rate is 151 rupees 88 paise. Simil...
The US dollar became the most expensive ever, the price of other currencies also increased at a high rate
Kathmandu. Nepal Rastra Bank has determined the exchange rate of foreign currencies for Thursday. Today, all foreign currencies rose in value, including the US dollar, Australian dollar, Euro, pound, Kuwaiti and Bahraini dinars. The prices of all...
The government's decision to give tax exemptions to China
Kathmandu. The government has decided to provide tax exemptions for the purchase and export of necessary materials for the expansion of the second section of the ring road. With this decision, the way has been opened to proceed with the process of...
A significant increase in the import of petroleum products
Parsa. In the six months of the current financial year, petroleum products worth Rs 90 billion and six crores have been imported through Birgunj. During the same period of the current year, petroleum products worth Rs. In the six months of the cur...
The price of gold and silver increased, now how much per tola?
Kathmandu. Today on March 3, the price of gold and silver has increased in the Nepalese market. Gold has increased by Rs 400 per tola while silver has increased by Rs 70 per tola.
The Nepal Gold and Silver Traders Federation has informed tha...