Is life insurance a life assurance?

Metaphorically it may be a true statement as this financial tool is the cheapest and most efficient financial tool to protect your family income due to premature death, dismemberment or illnesses. It is not designed to protect you from death.. nor does it design to prevent accident or illnesses... so dont get confused :-).

It is life "assurance" for financial support (whatever little it may be) to the participant or his loves one in the event of misfortune. Interestingly.. the concept of insurance is consistent with the Islamic principle (please refer Surah Al-Baqarah verses 240) which seem to suggest that upon death of a person (normally refer to man - as man is almost all the time the breadwinner of the family), the deceased or natural family of the deceased (father, mother, brother, sister) must ensure that his wife and children will be taken care of (shelter + foods) for at least 1 year.. Conceptually.. guided by this principle.. a man must have a saving of at least 12 months and a house. Hey! I am not making this up - go and read it if you dont believe me :-). 

Economist refer insurance as a risk management mechanism primarily used to hedge against the risk of uncertain or contingent loss - an explanation that may take 5 pages of this blog with all the jumbo mambo financial jargon that will bored you to death and I wont bother to elaborate also.. :p

If you ask me what is life insurance to me.. my simple view is that I see an insurance as a gift of LOVE.. a person who loves their family enough to ensure that in the event of any misfortune to him/her.. the family will not suffer more than just an emotional grief.....