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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.
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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…ple dollars/pounds. They won't know if it is true or not or you might of just hidden it somewhere. That is only one disadvantage as I can not think of anymore.
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… cause the persons rate to go up and possibly get terminated by the company. Also depending on your age and sex, the rates could go up too. You being a driver on someones policy put them at risk for lawsuit if you cause an accident. Now for the advantage: You being on someones policy can help your rates when you decide to get your own insurance, companies look at prior insurance and people that have continuous insurance get better rates.
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…n physical damages. If you do go to court the cost of you lawyer is a problem. Insurance companies have figured this into the premiums and they have lawyers that already are familiar with the problems of insurance suits. I am not a lawyer but just a consumer. So, please continue your search.
There are really not many disadvantages of having marine insurance or any other insurance. One of the disadvantages could be the price.
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advantages opening up of insurance aboon to financial market , customers more option for customers better services wider choice cheaper products disadvantages price war unhea…lthy practices misuse of public funds misuse and irregularities unethical practices
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…out insurance. Stated otherwise, in return for the payment of money (the insurance premium), the insurer assumes the financial risk of loss for a specified occurrence or occurrences. The range of occurrences and the amount of the financial risk is specified in the insurance policy. Rather than purchasing insurance, one could "self-insure". That means that the person or entity could assess the likelihood of a loss occuring for which he/she/it may be found legally liable for damages. Further, an assessment would have to be made as to the amount of damages for which it could be held liable if found to be at fault, and the cost of defending itself against the claim. It would also have to decide how much of its assets it is willing to place at risk to pay damages to the injured party if found liable. If the amount of the insurance premium is more than the dollar amount that is at risk by self-insuring, it may make business sense to self-insure. If not, there is little, if any, risk to insuring against the risk.
The only disadvantage would be that it does cost money.
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…articular advantage. A disadvantage can be an obstacle that more than one person can have at the same time.
advantages would be doesn't pollute, and it stores many things. disadvantages would be pollution caused by the burning of fuel cells
disadvantage of national health insurance scheme
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… you receive will be much like an HMO with a primary doctor needing to refer you to other physicians. Amerigroup is not available in each state and the benefits will vary depending on what state you live in and Amerigroup's relationship with their healthcare agencies.
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 …produced by others at relatively low cost. All potential trading partners can gain enormously through appropriate specialization and exchange. Advantages You can stand out. You can have a unique selling point. You can attract more customers if they are draw to your unique business. It helps you to be recognised and noticed. It helps your business to be remembered. Disadvantages If it is too unique it will put off potential customers and only appeal to a selected crowd which could end up meaning you would have a smaller business. It might not appeal to everybody. It might not attract your target market. Other competitors may use similar idea to yours and then you will have no unique selling point. Once your business is well known it is important to come up with other new unique points to keep customers reeled in and interested in your business.
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… physician regularly, increasing the chances of any potential health problems being caught early. However, health insurance premiums can be very costly. Depending on the insurance, many medical procedures, tests or surgeries may not be covered, necessitating an enrollee to have to pay out of pocket for these expenses.
What is the advantage or disadvantage to having workman's comp insurance separate from your general liability insurance?
They cover different contingencies, so it is not really a question of "advantage" or "disadvantage". Furthermore, they are written on different "forms" (contracts), although t…he same commercial insurance agent may be able to place both coverages, sometimes with the same insurer. If so, there may be some sort of "package policy" available so that the insurer allows a discount in premium if the "package" is purchased. Workers compensation insurance is often required by State law for employers having a given number of employees. It is intended to ensure that medical expenses and a percentage of lost wages sustained by the employee are paid if an injury occurs within the "course and scope" of employment. Whether an injury occurred within the course and scope of employment is often in dispute when a claim is made and may be raised as a defense by the employer (or, more accurately, the workers compensation insurer of the employer). General liability coverage is different. It may not be required by law, but may be required by the contract between the provider of services and the recipient of services. An example might be a general contractor and a company that wishes a new roof on its building. Like other insurance, general liability coverage transfers the risk of loss from the insured to the insurer in return for the payment of a premium. This benefits the contractor by limiting its financial risk for money damages arising from a mishap covered by the policy. It benefits the injured party by ensuring that is a stable source of funding for compensation for the damages.
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…lve long waiting lists. It is debatable if there are any advantages to having no health insurance other than saving a lot of money but it comes at a big risk should illness strike.
The 72-hour clause in an engineering insurance policy is an advantage to the homeowner and not a disadvantage.