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
Today, the price of gold increased by 5 thousand 200 rupees, how much for silver?
Kathmandu. The price of gold and silver has increased in the Nepali market on Tuesday. Today, the price of gold has increased by 5 thousand 200 rupees per tola. According to the Federation of Nepal Gold and Silver Deal...
Gold has fallen from its highest price, while silver has hit a new record
Kathmandu. The price of gold has decreased from its highest value so far. Gold today fell by Rs 600 per tola. According to the Nepal Gold and Silver Traders Federation, today the price of gold is being bought and sold at 270,000 rupees per tola. O...
Resumption of interest subsidy on subsidized loans, payment of Rs. 10.58 billion by Rashtra Bank
Kathmandu. Nepal Rastra Bank has paid 10.58 billion rupees to 50 banks and financial institutions for concessional loan interest subsidy. The government has resumed the payment of the subsidy, which was stopped due to the abuse of concessional loa...
After the opening of Tatopani and Rasuwagadhi, Korlanaka's business declined
Mustang. After Tatopani and Rasuwagadhi checkpoints came into operation, the import-export trade from Nepal-China North Korlana located in Mustang has decreased. According to the Mustang Customs Office, there are currently very few cargo container...
The government does not listen to the warning of IT professionals that the digital economy will be lost
Kathmandu. Professionals in the information technology and software services sector have requested the government to give high priority to the IT industry through the budget of the next financial year 2083 and 84.
The pre-budget recommendati...
Fall in the price of gold and silver, how much is the transaction per tola today?
Kathmandu. There has been a general decline in the price of gold and silver in the Nepalese market on Monday. According to the Federation of Nepal Gold and Silver Dealers, compared to Sunday, gold decreased by Rs 400 per tola on Monday. The federa...