The importance of
insurance cannot be neglected in the presents day when uncertainty
is prevailing every where. In the
words of Dinsdale, no one in the modern world can afford to be without insurance. The importance of
insurance not only limited to an individual or to a family. It has been spread over the
entire nervous system of business and
over the country as a whole. As such it can be studied under the following
headings:
(1) PROVIDERS SECURITY AND SAFETY:
Insurance offers financial protections
against large and uncertain losses to
the lives and properties of an individual in consideration of a small amount of premium . In life insurance payment is made , when the bread
winner of a family dies or a the term of
insurance policy expires. Fire
insurance protects against losses
due to fire while marine insurance offers protection against loss of ship cargo and freight . In
other insurances, relevant policies offer necessary protection against
loss of a given contingency. (2) PROVIDES PEACE OF MIND: Every body is exposed to various types of risks such as a of accident, risk of a health hazards risk of loss of property due to theft and fire etc., thus,
everybody is tensed about these risks. By offering protection to these risks, insurance eliminate there all tensions and fear from the minds of
insured and provides them a complete peace of mind.
(3) ELIMINATES DEPENDENCY: In case the bread-winner of a family dies,
the family members of the deceased insured do not have to carry begging bowls
for alms. As the life of the bread-winner of the family was already insured,
the insurer will pay the agreed sum to his family members. With the funds
provided by the insurer the family member
can be lead a decent life without seeking helping hand of a others. (4)
SOURCE OF SAVINGS: Life insurance
inculcates the habit of savings amount the general public by compelling them to pay premiums regularly on the policies taken by them. When a man
knows that he must pay the premium failing which his policy will lapse he has to cut down the unnecessary expenses
and save something to pay the premium. At the time of maturity of policy, the
insured gets the accumulated money which can be utilized for building a house,
marriage of daughter, education of children or for any capital
expenditure.
(5) SOUND INVESTMENT: Some life policies possess all the elements of investments I,
e, regular savings, capital
formation and return on the capital
along with certain additional returns.
These elements are found in policies
like endowment policies, money back policies, unit linked insurance plans etc., (6) PROTECT MORTGAGED PROPERTY: Generally the middle class policy holder
purchase assets or construct a building
by borrowing money from insurance companies . In case the insured
dies before repaying the loan, the legal
representative of deceased insured can
pay off the unpaid loan with the
amount provided by the insurer and keeps
the assets of the family intact.
(7)
OTHER USES: Life insurer fulfils the needs of an individual person such as
family needs, old age needs,
Re-adjustment needs, income for widow and widower, clean-up, funds and clean-up
expenses such as a for ritual
ceremonies, payment of taxes, etc., The insurer also helps to meet requirements of funds
in emergencies and in the event of unwanted losses in the form of compensation
mesothelioma law firm, donate car to charity california, donate car for tax credit, donate cars in ma, donate your car sacramento, how to donate a car in california, sell annuity payment, donate your car for kids, asbestos lawyers, structured annuity settlement, annuity settlements, car insurance quotes colorado, nunavut culture, dayton freight lines, harddrive data recovery services, donate a car in maryland, motor replacements, cheap domain registration hosting, donating a car in maryland, donate cars illinois, criminal defense attorneys florida, best criminal lawyer in arizona, car insurance quotes utah, life insurance co lincoln, holland michigan college, online motor insurance quotes, online colledges, paperport promotional code, onlineclasses, world trade center footage, massage school dallas texas, psychic for free, donate old cars to charity, low credit line credit cards, dallas mesothelioma attorneys, car insurance quotes mn, donate your car for money, cheap auto insurance in va, met auto, forensics online course, home phone internet bundle, donating used cars to charity, phd in counseling education, neuson, car insurance quotes pa, royalty free images stock, car insurance in south dakota, email bulk service, webex costs, cheap car insurance for ladies, cheap car insurance in virginia, register free domains, better conferencing calls, futuristic architecture, mortgage adviser, car donate, virtual data rooms, automobile accident attorney, auto accident attorney, car accident lawyers, data recovery raid, motor insurance quotes, personal injury lawyer, car insurance quotes, asbestos lung cancer, injury lawyers, personal injury law firm, online criminal justice degree, car insurance companies, business voip solutions
