Advantages of life insurance

by • 13/01/2013 • GeneralComments (0)463

Q.6 Discuss the advantages of life insurance?

Ans: ADVANTAGES OF LIFE INSURANCE

Following are the advantages of life insurance: –

1.         PROMOTES SAVINGS

The insured person saves the money to pay the premium of the policy. So it develops the habit of savings among the policyholders.

2.         FINANCIAL AID

After the death of a policyholder insurance company pays the insured amount to the heirs. So the family gets the financial aid to face many problems.

3.         PLANNING FOR FUTURE

Life insurance is very useful for the last age of a person. At that stage man cannot do any job so due to the availability of insured amount he can lead a good life.

4.         PAYMENT OF DECEASED DEBTS

Due to a sudden death the debts can be paid by the insured amount.

5.         PROFIT EARNING

Life insurance not only provides financial aid to the family of a deceased person but also gives profit on the capital.

6.         TAX CONCESSION

Sometimes government provides tax concession to the policyholders. It is also an

advantage of life insurance.

7.         CREDIT FACILITY

A policyholder can also obtain credit from various financial institutions against the life insurance policy.

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