Life Insurance is an agreement which pays an amount as a security to a person who has been assured or nominated, on the occurrence of an event. Even Before 100 years in India Life Insurance has made a debut. The insured amount is payable during the agreement period at either of the following time.
- The date of maturity,
- Specified dates at the periodic intervals or
- At the time when an unfortunate death occurs earlier.
Apart from these things, this Life insurance agreement also provides periodic payment of the premium amount to the corporation which provides the insurance and it is provided by the policyholder. This Life insurance is accepted as an institution world wide since it removes the risk involved by means of substituting the certainty for the uncertainty and provides a timely help for the family in case of any unfortunate occurrence of the death of the policyholder.
Life Insurance is a partial solution for those problems created because of the death of the life insured. But there are two ventures associated with this Life Insurance behind the life of each and every insured person. They are as follows.
- Death of the person leading to the difficulties for the entire family to fend itself
- A person living up to the old age without any support visibly.
The following makes the difference between the Life Insurance and the other type of savings.
As far as protection is concerned, life insurance provides complete protection against the risk involved in the death of the life insured. The entire amount along with all the other bonuses involved are paid to the insured, but in the case of other types of savings schemes, only the saved amount is paid.
When considering the aid to thrift, long-term savings are allowed through the facility of the 'easy installment' scheme, which allows the payment of premium either yearly or half-yearly or quarterly or monthly. One such example is The Salary Saving Scheme popularly called as SSS. Tax relief and Liquidity are other advantages of this Life insurance.