Lapsing of a term insurance policy can have serious aftermaths on your total insurance portfolio. This can also create a financial imbalance in your financial plan leading to heavy cost being paid for financial security. We all know that a term insurance plan bought at an early age can be quite beneficial and cheaper but if at an older age the policy lapses you always need to pay an extra cost for the same amount of cover and might not even get all the benefits of the cover as you have a grown older.
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedgeagainst the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraisingand controlling risk, has evolved as a discrete field of study and practice.