Significance of having a life insurance is to avail the "peace of mind" that it brings along. Having an adequate amount of life insurance effectively sets your mind free of some important questions like:
• What will happen to my family financially after I die?
• How will my wife and kids take care of their expenses after I am no more?
• How will I provide for my family in case I lose my job after an accident?
• How do I ensure that I am able to fund my child’s higher education?
• How do I ensure an income after my retirement?
Now, in order to have a financially secured future, you (the insured) have to pay the insurer (insurance company) a “life insurance premium”, which is either a regular annual payment or a one-time payment as the case may be.