What would you like to do?

What are the advantages and disadvantages of insurance?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

What are the advantages and disadvantages of insurance?
Advantages of Life Insurance

  • Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event.

  • Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.

  • Protection against rising health expenses - Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs.
  • Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages.
  • Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains.
  • Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life.
  • Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.

  • Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus.
  • Facility of loans without affecting the policy benefits - Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.
  • Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans.
  • Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family.
+ 28 others found this useful
Thanks for the feedback!
Follow

For those who haven't tuned into "Helix" yet, how would you convince them to watch it? What makes it different than other sci-fi apocalyptic thrillers out there?

View Full Interview

What are the disadvantages of travel insurance?

The disadvantages for Travel Insurance is that they don't know  whats true or not. Say your wallet gets stolen but you tell them  you had nothing in there except maybe a cou

Advantage and disadvantage living with family?

An advantage of living with your family is that it is most-likely free. You do not have to pay rent; therefore, you have more money for other things. However, a disadvantage i

What are the disadvantages of marine insurance?

There are really not many disadvantages of having marine insurance  or any other insurance. One of the disadvantages could be the  price.

What are advantages and disadvantages of being listed as a driver on someone else's insurance policy?

  Pros and Cons     Ok here are the disadvantages (from both stand points):     If you have any tickets or accidents they will be charged on the policy and
What disadvantages of self insurance?

What disadvantages of self insurance?

Insurance in general is the protection of financial loss. If you are self-insured you might be sued for more than the actual loss. You may be taken to civil court for more tha

Advantages and disadvantages of space telescopes?

a telescopes vision can be blocked by and astroid or by the clouds.  you won't get a clear view when all the dust blocks a lot since it  is zooming a lot. the advantages are

What is advantages and disadvantages of privatization in insurance?

advantages opening up of insurance aboon to financial market , customers more option for customers better services wider choice cheaper products disadvantages price war unhea
What is the disadvantages of insurance?

What is the disadvantages of insurance?

It costs money. You are basically betting against things going well. If you are a careful manager and have some cash reserves for emergencies your total cost may be lower with

What is the answer to advantage and a disadvantage?

The difference between and advantage and a disadvantage can be very significant. An advantage means you have the upper hand in a situation usually only one person can have a p

What are the advantages and disadvantages of Amerigroup Health Insurance?

Amerigroup Health Insurance is designed for low income individuals and families. They work with state agencies to offer government run benefits to their patients. The benefits

What are the advantages and disadvantages of comparative advantage?

Opportunity cost is the key to comparative advantage: Individuals and nations gain by producing goods at relatively low costs and exchanging their outputs for different goods
In Health

What are the advantages and disadvantages of health insurance?

Health insurance can provide a lifesaving force for those who are  either ill or have chronic health conditions. People who have  health insurance are more likely to go to a
In Health

What are the advantages and disadvantages to having no health insurance?

The disadvantages to having no health insurance is that in the event of being ill one will not have access to the treatments they need and any treatment they do get could invo