Business Studies, asked by 100gurjotsingh, 4 months ago

Explain in brief utility of life Insurance​

Answers

Answered by poojarypavan006
0

Answer:

Life Insurance is an arrangement between the Insurance company/Government which guarantees of compensation for loss of life in return for payment of a specified premium. In Life Insurance, the beneficiary whose name has been mentioned in the contract receives the specified sum, from the insurer in case of happening of the event i.e. Loss of Life. In this article we'll see:

Answered by sps43
0

Answer:

Most people understand the primary benefits of having life insurance: Your family gets money if you die unexpectedly – and you get the reassurance of knowing they’ll have resources to help carry on without you. While those benefits are generally true for all kinds of life insurance, there are other important advantages depending on the specific type of policy and amount of coverage you get. There are also benefits for women, too.Life Insurance is an arrangement between the Insurance company/Government which guarantees of compensation for loss of life in return for payment of a specified premium. In Life Insurance, the beneficiary whose name has been mentioned in the contract receives the specified sum, from the insurer in case of happening of the event.

Benefits of Life Insurance

1. Risk Coverage: Insurance provides risk coverage to the insured family in form of monetary compensation in lieu of premium paid.

2. Difference plans for different uses: Insurance companies offer a different type of plan to the insured depending on his need for insurance. More benefits come with the more premium.

3. Cover for Health Expenses: These policies also cover hospitalization expenses and critical illness treatment.

4. Promotes Savings/ Helps in Wealth creation: Insurance policies also come with the saving plan i.e. they invest your money in profitable ventures.

5. Guaranteed Income: Insurance policies come with the guaranteed sum assured amount which is payable on happening of the event.

6. Loan Facility: Insurance companies provide the option to the insured that they can borrow a certain sum of amount. This option is available on selected policies only.

7. Tax Benefits: Insurance premium is tax deductible under section 80C of the income tax Act, 1961.

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