Advantages of Life Insurance

To why you should have Life Insurance let us take a close look at advantages of life insurance:

Life Insurance has no competition from any other business.Many people think that life insurance is an investment or a means of saving.This is not a correct view.When a person saves,the amount of funds available at any time is equal to the amount of funds available at any time is equal to the amount of money set aside in the past,plus interest.This is so in a fixed deposit in the bank,in national savings certificates,in mutual funds and all other savings instruments.If the money is invested in buying shares and stocks,there is the risk of the money being lost in the fluctuations of the stock market.Even if there is no loss,the available money at any time is the amount invested plus appreciation.In life insurance,however,the fund available is not the total of the savings already made(premiums paid),but the amount one wished to have at the end of the savings period(which is the next 20 to 30 years).The final fund is secured from the very beginning.One is paying for it over the years,out period,if so chosen.The assured fund is not affected.There is no other scheme which provides this kind of benefit.Therefore life insurance has no substitute.

There is no similar to a hire purchase scheme.In a hire purchase scheme,the intended purchase is effected immediately,but the price is paid in instalments later.However, in the event of death,the balance instalments are not exused.They have to paid by the surviving family.In the case of life insurance,the premiums cease on death.There are no outstanding instalments.There is no financial arrangement that can be equal the benefits of life insurance.

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