Advantages And Disadvantages Of Life Insurance

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9.3. Advantages of life insurance
9.3.1. Superior saving plan:
Unlike any other savings plan, a life insurance policy affords full protection against risk of death in the event of death of a policy holder, the insurance company makes available the full sum assured to the policy holders near and dear ones in comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policy holders is sizable.
9.3.2. Encourage saving habits:
Life insurance encourages saving habits. Long term savings can be made in a painless manner because of the easy installment facility built into the scheme. The insured person can pay premiums through monthly, quarterly, half yearly or yearly installments. The salary saving scheme, popularly known as (SSS), provides a convenient method of paying premium each month through deduction from ones salary. The employers is authorize by the employee deduct the insurance premium monthly and remit to the life insurance corporation. The salary saving schemes (SSS) can be introduced in any institution or organisation subject to specified terms and conditions laid down by insurer.
9.3.3. Suitable for raising loans:
Life insurance policy can be given as security to raise a loan even for commercial purposes also. The loan can be raised without any delay on safe security of the policy even after

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