ADVANTAGE OF INSURANCE
The following are the advantage available to different groups.
1. Advantages to public
The general public enjoys the following advantages from the insurance:
a). Saving:
Life insurance is a means of saving. It persuades the policyholder to save money. The people make the arrangements for the premium even reducing their expenses to avoid the lapse of insurance policy .In this way, the saving leads toward large amount, which can be used for personal purpose.
b). Financial Support:
Life insurance is a good means to make provision for the old age. The amount received from insurance company will be helpful to support him and his family.
c) Availability of loans:
The life insurance policy can be used as security against loan. The people can get the loans from the banks and insurance companies against the security of life insurance policies. The value of security increase with payment of premium .The insurance company and the insured determine the value and the lender is informed.
d). Safety:
The life insurance provides safety against economic difficulties to the family. If the insured person dies, the dependent will get amount from the company
2. Advantage to the businessmen
The following advantages are as follow.
a). Safety:
The fire and marine insurance provide safety against the risk of marine and fire losses. The workmen’s compensation insurance provides sum assured to the worker on accident. The businessmen can even make up of their losses by insurance. Thus the provide safety against different kind of risk in business.
b). Availability of loans:
The businessmen can need money for expansion and improvement of their business. To get the loan the businessmen have to give guarantee to the bank. They can use their insurance policies as security to take loan from bank.
3). Advantage to the community
The following advantages are as follow,
a). Availability of funds
Funds are required to provide facilities to the community. Insurance companies generate fund. These funds san be used to reduce the problem of people.
b). Development of country
The insurance companies help in the economic development of country. The insurance companies collect premium and invest the funds in purchasing shares and debenture of companies. Thus they help in industrial and economic progress of the country.
c). Employment
The insurance companies provide employment to people. The values are employed to calculate the premium and loss. The people get job as salesmen and sales officers. The insurance companies invest funds in different companies and create jobs in these companies indirectly.
d). Other Benefits
Insurance has created a sense of confidence regarding future. The insurance companies spend money on medical research, health services causes of fire road accidents, to inform the public to reduce the risk of loss. The insurance companies thus render a great service to the community.
4 Advantage to the Government
The insurance companies invest their funds in government securities and the government gets sufficient loans easily. The insurance companies also earn foreign exchange by doing insurance business in foreign countries.
The following are the advantage available to different groups.
1. Advantages to public
The general public enjoys the following advantages from the insurance:
a). Saving:
Life insurance is a means of saving. It persuades the policyholder to save money. The people make the arrangements for the premium even reducing their expenses to avoid the lapse of insurance policy .In this way, the saving leads toward large amount, which can be used for personal purpose.
b). Financial Support:
Life insurance is a good means to make provision for the old age. The amount received from insurance company will be helpful to support him and his family.
c) Availability of loans:
The life insurance policy can be used as security against loan. The people can get the loans from the banks and insurance companies against the security of life insurance policies. The value of security increase with payment of premium .The insurance company and the insured determine the value and the lender is informed.
d). Safety:
The life insurance provides safety against economic difficulties to the family. If the insured person dies, the dependent will get amount from the company
2. Advantage to the businessmen
The following advantages are as follow.
a). Safety:
The fire and marine insurance provide safety against the risk of marine and fire losses. The workmen’s compensation insurance provides sum assured to the worker on accident. The businessmen can even make up of their losses by insurance. Thus the provide safety against different kind of risk in business.
b). Availability of loans:
The businessmen can need money for expansion and improvement of their business. To get the loan the businessmen have to give guarantee to the bank. They can use their insurance policies as security to take loan from bank.
3). Advantage to the community
The following advantages are as follow,
a). Availability of funds
Funds are required to provide facilities to the community. Insurance companies generate fund. These funds san be used to reduce the problem of people.
b). Development of country
The insurance companies help in the economic development of country. The insurance companies collect premium and invest the funds in purchasing shares and debenture of companies. Thus they help in industrial and economic progress of the country.
c). Employment
The insurance companies provide employment to people. The values are employed to calculate the premium and loss. The people get job as salesmen and sales officers. The insurance companies invest funds in different companies and create jobs in these companies indirectly.
d). Other Benefits
Insurance has created a sense of confidence regarding future. The insurance companies spend money on medical research, health services causes of fire road accidents, to inform the public to reduce the risk of loss. The insurance companies thus render a great service to the community.
4 Advantage to the Government
The insurance companies invest their funds in government securities and the government gets sufficient loans easily. The insurance companies also earn foreign exchange by doing insurance business in foreign countries.
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