LIFE INSURANCE

ATUL SHARMA

parishkar college of global excellenceINSURANCE

IMPORTANCE OF LIC

SUB.To SUB.BY MR. DEEPAK SIR ATUL SHARMA

Defination of lic sec 2(11) 1938..

life insaurance business mean the business of effectingcontract of insaurance upon human life ,including any contract where by the payment of money is assured on death or the happning of any contingency dependent on human life.

Importance of life insurance..The importants of life insurance may be difined into four categories from the study point of view

Advantages to insured

Advantages to industry and trade

Advantages to society and government

Other advantages

Advantages to insured

1)family protection.2)provision for education and marriage etc…3)provision for old age.4)increase in credit. 5)tax relief .6)cash estate.

Advantages to industry and trade.

1)provision for loan .2) facility for capital.3)security of loan .4)insurance by partner .5)insurance of key personnel.

Advantages to society and government

1)Industrial development2)self dependence.3)reduction in unemployment problem.4)social satisfaction.

Other advantages

1)peace of mind.2)Efficiency.3)Defeat of time.

Advantages to insured

life insurance is understood to be very important mean for family protection .It provides safety to the dependents after death.

family protection…...

provision for education and marriage….money is needed for the marriage, education of the child and every person has a desire that these task may be fulfilled without any hurdle .life insurance helps to fulfill this desire of human beings. money may be easily arrangsd by taking education and marriage insurance policy.

Provision for old age…..

life insurance is a very convenient route to such money reserve for old age because it is a provision of today for tomorrow in which no excess burden is left.

Increase in credit

THE credit of assured is also increased by taking life insurance .a loan may be acquired policy for the insurer himself. loan can also be taken from other financial institutuon like bank etc.because life insurance policy is accepted as a security.

Tax reliefThere is also a provision of tax exemption on payment of life insurance premium.thus the premium amount paid is automatically deducted from income while calculating tax liability,hence,burden of tax payment is reduced after getting tax exemption

Cash Estate….life insurance is a superior medium in the cash from of fixed amount and thus cash may be managed without selling other assets .life insurance is like building up one`s liquid assets or cash estate to be available in times of need .it is also considered to be the nmost satisfactory method of payment of taxes regarding one`s estate.

protection against creditors...The insurance amount may be protected from the creditors .this work be done under the provision of valid assignment or married women property act.

Advantages of Industry

and Trade

Provision for loanlife insurance is a convenient source to acquire loan for the industry and business. on life insurance policies , loan may be acquired from other source on the basis of surety provided by the insurer….

Facility of capital life insurence also invest the premium income in the form of capital and loan in the industrial and business units . life insurers collect the overview from an huge number of assured as saving and invest thatb amount in the government and non-government institution

insurance by partner

partner of any partnership firm may take such joint insurance through which in case of death of a partner ,the amount of insurance may be availed by the remaining partner.

Security of loan…...

The other benefits of life insurence is that the creditors may secure his loan amount by insuring the life of the debtors.

Insurance of key personnel.

usually , insurance also make such type of provision in insurance under which businessman can take insurance of key personnel so that in case of their untimely demise ,at once ,losees occured may be got indemnified to some extent.

Advantages to society and

government…..

Industrial development….

life insurance is also helpful in the industrial development of the nation . A significant contribution is given in industrialisation by life insurance through providing investment assistance to industrial of the country...

SELF- DEPENDENCE....life insurance makesc human being self dependent and hence reduce the burden on the society. after making provision for the future,unnecessary dependence of him and his dependent on the society are reduced.

Reduction in unemployment problem…...

life insurance helps to reduce the unemployment problem directly and indirectly. many people get employment in the life insurance institution .

Social Satisfaction….Dissatisfaction takes birth due to scarcity economic scarcity create such dissatisfaction which become the basic causes of revolution .life insurance create both the individual and social satisfaction by providing economic security.

OTHER ADVANTAGES

Peace of mind….

life insurance ends the confusion in the mind of human being by providing economic safety . The human being feels mental peace while experience being totally secured.

EFICIENCY ….Safety and peace keep the morale of human being higher and a motivated person may carry out the work with more dedication and promptness

DEFEAT OF TIME….Money saving need time and who know that how much time destiny gives to any person .sometimes , even time gets defeated at the hands of destiny . life insurance maintain coordination between time and exemptions.

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