Question

Explain the importance of life insurance.

Answer 1

The importance of life insurance can be enumerated as below:

(i) It covers the risk of death, disability or loss.
(ii) It encourages compulsory savings.
(iii) It achieves the purpose of life assured.
(iv) It gives the peace of mind.
(v) It helps when loss of life occurs.
(vi) It helps for social benefits.
(vii) It promotes investment of funds.
(viii) It facilitates for the payment of debits.
(ix) It provides loan facility.
(x) Tax relief.