Importance of Life Insurance

Individual life insurance, group, is of great importance for the business community and the general public. Some of the major life insurance benefits are given below-

I) protection against premature death 
His untimely death of the insured person's life insurance is dependent on the family and provides protection assured. Dependents or family members of a certain sum of money to get assured in case of death.

Ii) Saving old age.
After his retirement reduces a person's earning capacity. Holding a person in his / her old age can enjoy peace of mind and a sense of security.

C) promotion of savings. 
Encourages people to save money on insurance compulsory. When a life policy is assured of regular pay premiums to keep the policy in force, and he can not get back the premium, only the surrender value can be returned to him. To surrender the policy, the policyholder surrender value only after the expiration of the policy period.

Iv) Investment Initiates
Life Insurance Corporation encourages and mobilizes public savings and investment for the economic development of the country in the same channelizes. Life insurance is an important tool for mobilization and investment of small savings.

E) Credit Eligibility
A life insurance policy can be used as security to raise loan. It improves the ability of business credit.

Vi) social security
Life insurance is important for the whole of society. Life insurance for a person's education and marriage of children and able to provide for the construction of the house. It helps a person for the future economic base.

Vii) tax benefits 
Total income from premiums paid under the Income Tax Act, deduction is allowed.