Apr 14 - 20, 2008

Insurance is a common phenomenon of one's solving the monetary problems at the time of need or in any serious troubles in a life period of a person.

Through insurance a man is registered with an insurance company for the safety of his life, property, house, health, car, motor cycle, building, flat, plot, air travel, and many other life related matters. Insurance is a basic need of a family or a person at the death of an earning person. Life insurance is arguably the best investment in today's financial arena. It brings peace of human mind at an affordable price, it is so important to protect our self and our loved one's against any eventuality or crisis in life. Too many people in the country are not sufficiently protected with life insurance and many do not realize that just for pennies a day they can protect their family with term life insurance.

In simple terms, insurance allows someone who suffers a loss or accident to be compensated for the effects of their misfortune. It lets us protect our self against everyday risks to our health, house and financial situation. Insurance policy is a way of providing legacy; a plan under which regular payments are made to a company during somebody's lifetime and in return the company pays s specific sum to the person's beneficiaries after the person's death.

Life insurance is a contract between the policy owner and the insurer, when the insurer agrees to pay a sum of money upon the occurrence of the insured's death in return the policy owner (policy payer) agrees to pay a stipulated amount called a premium at a regular intervals. Events that may be covered include: death, diagnosis of a terminal illness, diagnosis of critical illness, disability due to ill health. permanent disability, accidental death.. Life insurance supports us at the many stages of our life. Our life insurance policies help us to plan the future while offering protection against the financial repercussions of one's death by providing a death benefit to one's beneficiaries. It provides affordable protection for a predefined period of time so it is often used to serve temporary protection needs.

There are many different types of insurance such as life, health, households, building, car, travel holiday etc. Each insurance policy has its own value for the insured. One must realize the importance of insurance policy, because it provides safety to a person at the time of loss or theft. Many people around us have future dreams and planning. It is quite natural for a human being to worry about those who he loves. Especially the people who are in charge of their families have their minds running for the care, safety and health of their dependents.

The human life value is central to protection against "Loss". Virtually life insurance aims to provide protection against all odds. Life Insurance Company had faced radical transition since 1947 In Pakistan. The periods from 1950 to 1960 was commanded by private life insurers who were engaged in marketing and selling of their life insurance plans and policies in the country. Pakistan insurance sector nationalized in 1972 and a State Life Insurance Corporation was established by merging all the insurance companies, with a view to run insurance business on a sound footing, provide more efficient service to the policyholders, maximize the return to the policyholders by economizing on expenses and increasing the yield on investment, make life insurance a more effective means by mobilizing national savings, widen the areas of operation of life insurance, make available to as large a section of the population as possible, extend it from comparatively more affluent sections of the society to the common man in towns and villages and use the policyholders fund in the wider interest of the community.

Presently, there are about 51 important insurance company which are providing all sorts of benefits to the policy holders, engaged in office works both government and private company. Such policies are: share of group life insurance policy for the employee, share of group provident fund, share of group house finance insurance, group of life insurance policy for all agri-business, group insurance policy for consumer finance, for health, group accidental policy for the fishermen of the society. Life insurance and health insurance policies are the two most important segments of the insurance policy. Other policies are also equally important. All insurance policies provide immediate financial help to the policy holder at the time of accident or loss of life of an insured person. Take the example of health policy. Normally a health insurance plan covers the family which includes wife and children of the insured person. The standard policy covers hospitalization in the event of illness or an accident. The insured patient can also get a room rent and the fees being paid for the laboratory tests and other treatments which are allowed in the health insurance cover one has acquired. The health insurance companies have their approved panel of the hospital. As soon as the insured person or beneficiary gets admitted into the hospitals on the panel, the hospital informs the insurers to send their doctors who has been assigned the job to visit the hospital within the defined region and zone to keep a track of the physical condition of insured patients and the improvement as well as the quality of services rendered by the hospital. Critical illness or fatal diseases are the main hazard which is being covered and is the best part of health insurance plan. In these days the treatment for the critical illness such as heart attack, cancer and kidney failure are much higher than the range of a common man. At present the cost of treatment for cancer is between Rs 120,000 to Rs 50,0000 and the cost of angioplasty is from Rs 125,000 to Rs 500,000. The hearth-by pass surgery costs from Rs 150,000 to 350,000 in special condition. MRI 15,000 to20,000, Cataracts Rs 20,000 to 30,000, Hernia surgery might cost from Rs 30,000 to 40,000 and Thallium Scan would range from Rs 15,000 to 20,000. While taking a very close look at these above cost structure of the treatments, one can easily realize how difficult it might become when anyone confronts the illness.

In Insurance the cost of getting a policy is normally called premium. Generally the premium rates are on per person per annum basis and the premium rates are settled on the age limit of which most of the insurers agree to 60 years, but in some cases it would increase up to 70 years. There is a great need felt on the part of the government and the corporate level to ensure that optimistic number of families be provided with the benefits of their hard earned money through life insurance that could ultimately raise the saving ratio and contribute much to the economic development of the country.