Insurance plays a vital role in every aspect of life.insurance not only reduces the risk but also helps in investing the money.There are some points which justify the importance of insurance:
PROVIDING PROTECTION : Insurance provide protection. The protection can be either protection for life or protection for property.
INVESTMENT ELEMENTS : A life insurance contract,provides not only protection but also helps in investments. A policy holder pays premium to insurance company on a regular time interval.
DISTRIBUTION OF RISK : Through insurance, the risk of one person can be distributed among many people. The policy holder pays premium. The amount of policies accumulates in the form of one large fund.
LOAN FACILITY:Banks, financial institutions and even insurance companies can easily extend the loan facility to policy holders.
ENCOURAGEMENTS TO SAVINGS : Under the insurance contract,every policy holder has to pay a premium on insurance policy. If premium is not paid,chances of penalty/cancellation of policy increases.
MORE EMPLOYMENT:Insurance provide employment to many people.
1 comments:
Thanks for sharing the importance of insurance. Insurance is absolutely necessary these days for all the people and we should plan to buy the policies that are of utmost need.
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