Importance Of Life Insurance

EXECUTIVE SUMMARY

Life is the most valuable thing, which cannot be measured monetarily, following the concept claim to cover the risk of the loss of life – “Life Insurance”. The concept of life insurance is existing in the mankind since the medieval historic age, the soldier those who loose their life in battle, their dependent were provided certain sum of money so that they can move their life.

But the concept has been changed in todays world, the purpose of Insuring is not only cover of risk but also investment, tax benefit , savings etc. Insurance provides you with that unique sense of security that no other form of investment provides. It gives you a sense of financial support especially during the time of crisis

WHY SHOULD WE TAKE INSURANCE?

Insurance is desired to safeguard oneself and one’s life against possible losses on account of risk and perils. It provides financial compensation for the losses suffered due to happening of any unforeseen events. By taking life firstly a person can have peace of mind need not worry about the financial consequences in case of any ultimately death. Many more attractive features make life insurance necessary for every responsible citizen of the country such as:

• Superior to an ordinary saving plan as to provide full protection against risk of death.

• Encourages and forces compulsory savings unlike other savings instruments, wherein the saved money can be easily withdrawn.

• Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan.

• Offers tax relief to policy