Understanding life insurance becomes easier when you realize that insurance was a concept developed to transfer a person's risks to another party, thereby protecting the insured person in the event of any calamity.

One of the earliest forms of life insurance existed during the Greek and Roman times when following an individual's death, all surviving members made contributions for burial services.

It was only much later, in the 17th century, when a formal form of life insurance was introduced. This was under the Tontine Annuity System wherein associations of individuals were formed and a fund was created by equal contributions from each member. This sum was invested, and at the end of each year, the dividend was distributed among the surviving members. In all of this, the last remaining survivor received the entire amount of the principal.

With the passage of time, life insurance has evolved into being an easy and affordable means of providing financial security for the insured and his/her family, in the event of the death of the insured or his/her inability to earn due to physical disabilities.