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The word "insurance" basically accompanied me throughout the past *ahem* years of my life.

My mum has been working in the insurance industry for almost 30 years odd. Before I was even born, she started off as a mere clerk in an insurance firm. Finally, after years of hard work, she's now a director of the insurance firm.

What I'm saying is that "insurance" somewhat paid for my daily needs (and wants) all these years.

Anyway...

Why do you need Life Insurance?

Either...

You are looking for a lump sum to cover your mortgage balance if you die or are diagnosed as terminally ill

Or...

You are looking for a lump sum to be paid to your loved ones if you die or are diagnosed as terminally ill

I would say that life insurance is something like a life assurance. It's kinda like a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals.

As with most insurance polices, life assurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated beneficiary (or beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.

By the way... My noobish knowledge is gain through reading life insurance articles and not the many years of dependency on my mum's insurance career. :P