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Human-life approach and the needs approach include the two main methods used to indicate the total amount from the insurance someone needs. Human-life approach is founded on the individual's salary and through discount rate, the existing valuation on life can be identify as the needs approach is based on every unusual and reoccurring expenses. This type of insurance is design to guard you and also enable you to pay a prearranged amount. Statistically, it is estimated that greater than billion people are found below poverty line according to income standards and lack basic facilities to generate their lives valuable. In this way, people get alert to the truth that there are children living with restricted benefits and facilities cannot enjoy normal living standards. This is why a growing number of quantities of charitable and sponsorship agencies are increasingly being established. These corporations try hard to satisfy needs of the children but the high substantiate costs urge these to search for sponsors. This is the point where sponsorship agencies enter the scene.