Insurance Loans24

ECONOMIC USES OF LIFE INSURANCE

<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Following </span>are the different
economics uses of the Life insurance</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
 1: 
Financial security: Life insurance provides financial security to the
family. An untimely  and premature death
of the bread winner result in a great financial problem to the family. If no
security provision is made by the breadwinner to meet such this situation., his death  would make the family destitute. They will
become a burden to the society. Life insurance is the best instrument to
provide security in the event  of happening  of such contingency.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjvf47rzTvf4fS4eWllPZuSsF80JosCRm9njEIfPxJJ_eiEsbiuAst3bwYut3Py7PsnfCXeSPkzJu9X-YTuox-YJUxIzZHyelMk_n0gDqt3MBgKuBvu6OZOxSLRdb49c1pTWSpEkRFRjg/s1600/Economic-Downturn.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjvf47rzTvf4fS4eWllPZuSsF80JosCRm9njEIfPxJJ_eiEsbiuAst3bwYut3Py7PsnfCXeSPkzJu9X-YTuox-YJUxIzZHyelMk_n0gDqt3MBgKuBvu6OZOxSLRdb49c1pTWSpEkRFRjg/s1600/Economic-Downturn.png" width="400" /></a></div>
2) Savings: Life insurance is also a potent
instrument for savings. </div>
<div class="MsoNormal" style="text-align: justify;">
 3) Dreams come
true: Every person lives in dream  dream
of very high education for children very decent marriages to daughters  etc. Life insurance makes such dreams come
true even if they dreamer is no more. </div>
<div class="MsoNormal" style="text-align: justify;">
 4)  Collateral of Security : Own
shelter has become an  essential to
everyone. Many institutions offer mortgage loans for purchase  construction of  a house/ flat/ Life insurance acts as a
collateral security  in respect of the
such loans. Without such security the same shelter
considered  an asset as long as the house
purchaser is alive, will become a liability to the family if he dies before
repayment of the entire loan. To repay the outstanding loan, the property will
have to be disposed off. Circumstances. will make  it a distress sale and it will fetch much
less than its reasonable market value. </div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2oFEiPG-DUIpfzyUrPqDz5qdqpkDIiwgRBpV1LfgbmEchyakyCvu0yHX6HRnttKgxDDi67Cp7CcPdFxxMcI0WXBe9fbjJEw8u6hH1wQxIWJViwHQMgvzAqD4plqUuPXQ81C4E5SgYQqA/s1600/Life_Insurance.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="241" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2oFEiPG-DUIpfzyUrPqDz5qdqpkDIiwgRBpV1LfgbmEchyakyCvu0yHX6HRnttKgxDDi67Cp7CcPdFxxMcI0WXBe9fbjJEw8u6hH1wQxIWJViwHQMgvzAqD4plqUuPXQ81C4E5SgYQqA/s1600/Life_Insurance.png" width="400" /></a></div>
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
 5)  Financial Independence: Life
insurance provides financial Independence 
in old age. The lumpsum maturity value of a policy when received  can be invested to yield interest  sufficient 
to meet expenses after retirement from work life. Or the same  money can be utilised to  purchase an annuity. While  still young, an individual  can purchase a deferred annuity  and fund the same in easy instalments. </div>
<div class="MsoNormal" style="text-align: justify;">
 6) 
Protects Creditors: Organizations 
or  individual  who are in credit business, can ensure  for themselves  recovery of loan  when a 
debtor dies. The can obtain a group 
individual  life insurance   policy on then lives  of debtors. So that if a  debtor 
dies, the policy proceeds will repay the 
outstanding  loan. </div>
<div class="MsoNormal" style="text-align: justify;">
 7) Protects Partnership firm: A Partnership
firm can insure the lives of the partners to the extent of capital invested by
each  in the business. In case of the
death  of the partner  the danger of withdrawal of capital by the
legal heirs of the deceased   partner can
be met from the processed  of the policy.
Otherwise  there is the risk of financial
problems for the partnership business.  </div>
<div class="MsoNormal" style="text-align: justify;">
8) Provides  fund for replacement:
Under key man insurance  an
organization  can insure the lives of
executive whose expertise greatly 
contributes  to their profits. In</div>
<div style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
 case  of
the death  of a key man, the money
provided by the insurance can be utilised 
to recruit  a new person who is equally
capable as a replacement.</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7tKCXdxQCW-Rd_6Sip5VhNcxaV4b5aLzzHreCK-EHaMWclQMW7gYFWH3Y5y9wCZ9Q7vQuBzlMFlDVbyqIbtoAPbATntx5wvw4BMH8ANA8GaTsJ2XAvVOK1eMNI_NBAU_tHhdbLLGcJkI/s1600/insurance.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="363" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7tKCXdxQCW-Rd_6Sip5VhNcxaV4b5aLzzHreCK-EHaMWclQMW7gYFWH3Y5y9wCZ9Q7vQuBzlMFlDVbyqIbtoAPbATntx5wvw4BMH8ANA8GaTsJ2XAvVOK1eMNI_NBAU_tHhdbLLGcJkI/s1600/insurance.png" width="400" /></a></div>
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
 9) Improves 
productivity:  Organization  can purchase group life insurance policies as
part of the their employee– welfare program. This acts as a  morale booster to the workers and result in
improved production. <b><o:p></o:p></b></div>
</div>

ECONOMIC USES OF LIFE INSURANCE

Following are the different economics uses of the Life insurance 1: Financial security: Life insurance provides financial security ...

CHARACTERISTICS OF LIFE INSURANCE

<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="p0" style="margin-bottom: 0pt; margin-top: 0pt;">
<span style="font-family: Calibri; font-size: 11pt;">The following characteristics  of features in life insurance may be deduced from the aforesaid definitions</span></div>
<div class="p0" style="margin-bottom: 0pt; margin-top: 0pt;">
<span style="font-family: Calibri; font-size: 11pt;">: 1) Offer and acceptance: Like other contracts of insurance the life insurance  contract is also  the outcome </span><span style="font-family: Calibri; font-size: 11pt;">of an offer made by the policy owner and its acceptance by  the insurer. Generally the  life insurance  is a  contract is made in waiting. </span><br />
<span style="font-family: Calibri; font-size: 11pt;"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdPTvB9y2Rc7ZxOoQJlVvwQ5JuX1hHz6yqimATz4ZoQuMthHYdOUB58FGdsMdtnEKv-XrFez9py8aGeI6l3ckkox5I-XUQcNMDiRrJ77-ENR940PZ9roGjNXgD6_KAwyzl715wc7HsmMo/s1600/modern-womans.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdPTvB9y2Rc7ZxOoQJlVvwQ5JuX1hHz6yqimATz4ZoQuMthHYdOUB58FGdsMdtnEKv-XrFez9py8aGeI6l3ckkox5I-XUQcNMDiRrJ77-ENR940PZ9roGjNXgD6_KAwyzl715wc7HsmMo/s1600/modern-womans.png" width="400" /></a></div>
<span style="font-family: Calibri; font-size: 11pt;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="p0" style="margin-bottom: 0pt; margin-top: 0pt;">
<span style="font-family: Calibri; font-size: 11pt;">2) Agreed sum of money: The insurer agrees to pay a  certain sum of money either on the death of policy owner  or on the maturity of the policy whichever is earlier </span></div>
<div class="p0" style="margin-bottom: 0pt; margin-top: 0pt;">
<span style="font-family: Calibri; font-size: 11pt;"> 3) Premium: The policy  owner is liable to pay periodically the amount of the payment in the form of premium till the death of the policy owner or expiry of the period of policy  whichever is earlier</span><br />
<span style="font-family: Calibri; font-size: 11pt;"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7rCtC82NsVATjmvxaE4Ek2q846q_3iYhYklFi9Rj_91iUArLoHfTukKxTajP9iGyUTBXRszWLMhla6hvtyZ1tNAjeRlCgLRji0PwNGx3oQHE345iQY8FC6I1yETPV1LOLAVP4lrbqHnY/s1600/Life_Insurance.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="241" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7rCtC82NsVATjmvxaE4Ek2q846q_3iYhYklFi9Rj_91iUArLoHfTukKxTajP9iGyUTBXRszWLMhla6hvtyZ1tNAjeRlCgLRji0PwNGx3oQHE345iQY8FC6I1yETPV1LOLAVP4lrbqHnY/s1600/Life_Insurance.png" width="400" /></a></div>
<span style="font-family: Calibri; font-size: 11pt;"><br /></span>
<span style="font-family: Calibri; font-size: 11pt;"><br /></span>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="font-family: Calibri; font-size: 11pt;">4) Not a contract of indemnity: Life insurance contract is a note a contract  of indemnity as the loss caused by the death cannot be measured in terms of money is a compensation for loss of the one’s life. 5)  Insurable interest: In life insurance  insurable interest must exist when the claim. The person who has been assigned  a life policy  need not  have insurable interest in it as the insurable interest was already present at time of taking policy.</span><br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="font-family: Calibri; font-size: 11pt;"><br /></span><span style="font-family: Calibri; font-size: 11pt;"> 6) Lending helping hand: Life insurance  provides helping hand to those  who are left support less and  helps financially in case of the death of the insured. It is also considered to be than the best alternative for making savings. </span><br />
<span style="font-family: Calibri; font-size: 11pt;"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUJIfFBwo-NJfhSo2G3XgmoEu-95e9IJwEz38ek15Jt5VQEousT_KYkRy7B-y9BY4J2HIwAd6sv7J-oSaacDR0pdVomgYT5onVzCa9qxD3oxDL_2FqvTH1innZl0vkeDOCYONLAUIoXqo/s1600/insurance+life.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUJIfFBwo-NJfhSo2G3XgmoEu-95e9IJwEz38ek15Jt5VQEousT_KYkRy7B-y9BY4J2HIwAd6sv7J-oSaacDR0pdVomgYT5onVzCa9qxD3oxDL_2FqvTH1innZl0vkeDOCYONLAUIoXqo/s1600/insurance+life.png" width="400" /></a></div>
<span style="font-family: Calibri; font-size: 11pt;"><br /></span></div>
<div class="p0" style="margin-bottom: 0pt; margin-top: 0pt;">
<span style="font-family: 'Calibri'; font-size: 11.0000pt; font-weight: bold; mso-spacerun: 'yes';">7) Covers other risks: Life insurance covered  others risks which are connected with the  human life in addition  to the risk of death. For example, total and permanent disability  or temporary disability and medical expense compulsory retirement or the  economics death risks etc., have also  been covered  under the purview of Life insurance these days. 8) Relief  sword of damocles: Life insurance relieves  the insured  from the sword of damocles  i.e.., various risks and uncertainties  which may occur before and after  the death of the insured</span><br />
<span style="font-family: 'Calibri'; font-size: 11.0000pt; font-weight: bold; mso-spacerun: 'yes';"><br /></span>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<span style="font-family: 'Calibri'; font-size: 11.0000pt; font-weight: bold; mso-spacerun: 'yes';"><br /></span></div>
</div>

CHARACTERISTICS OF LIFE INSURANCE

The following characteristics of features in life insurance may be deduced from the aforesaid definitions : 1) Offer and acceptance: Li...

Insurance Loans24

ECONOMIC USES OF LIFE INSURANCE

CHARACTERISTICS OF LIFE INSURANCE

Popular Posts

Labels

Blog Archive