The concept of Life Insurance was founded by William Talbot and Sir Thomas Allen in 1706. They have established the first life insurance company in London named the Amicable Society for a Perpetual Assurance Office. The contract between the insurer and the insurance policyholder, where the insurer or assurer promises to pay a certain sum of money or the benefits upon the death of an insured person or in exchange for a premium is known as life insurance. Shortly, insurance means the protection from a financial loss. In Nepal, Life Insurance companies are run under the strict policy of the Nepal Government and the insurance companies need a permission of the government in order to close or re-establish the company.
Different life insurance companies have a different policy, it depends on the people what kinds of policy benefits them the most. In order to get the benefits, insurance policyholder also needs to obey the rule of the company. If an insured person is out of the box then no life companies might be willing to help you with the benefits. An insured person or the policyholder needs to pay a certain amount of sum either regularly or as one lump sum according to the contract they have signed.
Some people do life insurance for protection policies whereas other for investment policies. It depends on the creative mind of the people what they are expecting in the coming future. The form of risk management which is a hedge against the risk of uncertain loss is also known as life insurance.