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.