Employee's welfare

Employee's welfare is one of the contemporary issues in an organization to increase the productivity of the organization. Business person and organization can make a provision for the welfare of their employees through life insurance policies covering accident and sickness of the employees. It can be one of the best sources of morale and motivation for the employees. An employee's attitude towards his/her job,colleague will be positive due to the provision of insurance made by the organization. It is a good sign in an organization to have higher productivity.

Facility to Take Loan

Insurance provides a basis for credit for business person. People who are engaged in business or want to start a new business can take loan from banks or financial institution with no trouble against the security of insured property. The borrower are assured that in case the assured value is destroyed the insurance company will pay their value. If there was no things like insurance the banks or financial institution would have hesitated to give loan on the uninsured collateral.

Financial Security

With insurance there is the protection of loss of goods and properties in exchange for a premium. It is important to realize that the value of property is more important than the premium. Business can be carried out without the fear of loss without hesitation because insurance provides certainty of payment in case of loss.

Assures Peace of Mind

Insurance removes most tensions,fear and anxiety associated with future uncertainties. It results in improve meant of the efficiency of people because the carefree person can devote his/her body and soul together for better achievement. Thus insurance provides peace of mind to the people.

Cultivates Saving Habits

An insured person should compulsorily pay premium in time as stated in an agreement in order to avoid fine and the lapse of insurnace policy. It results in persuaded saving habit of persons. It helps to reduce the unnecessary expenses. Therefore, insurnace is a means of cultivating saving habit of people.

Provision of Loan

An insured person can get the facility of loan from the insurance company.Similarly he/she can take loan from other financial institutions against the security of insurance policy.Thus a institution against the security of insurance policy. Thus a person can also meet the need of fund through such provision of loan. Bank and financial institutions prefer the insured assets as collateral for providing loan.

Improves Standard of Living

Insurance has become a sure instrument to provide protection against unexpected risks. By means of insurance, people can maintain their standard too. It is because insurance company provides safeguard in terms of money to avoid the unfortunate financial crises.

Arrangement for Education and Marriage of Children

At present, insurance can also be taken for provision of education and marriage of children. For this, premiums paid in installment basis. After the maturity of policy, assured amount is paid to concerned party. That is why parents can meet the financial need for education and marriage of their children. It helps to avoid the financial burden at once.

Profitable Investment

Life insurance is considered as an important sector for profitable investment. An insured person will get sum assured after the maturity of life insurnace policy. In case of his/her death before maturity of policy, his/her nominee will get assured amount. This payment of assured amount is the result of the payment of premium that is smaller than the assured amount.

Increase of self respect

Self respect is linked with the independence of a person in the society. Since insurance provides economic support to a family, they do not have to depend on other's help. Therefore this will increase the self respect of a person and his family in the society. Therefore increase of self respect is one of the importance and benefit of insurance.

Ecomonic Protection

Insurance provides safety against economic difficulties to individual and family. In case of life insurance if the insured person meets pre-matured death, the dependent will get sum assured from the insurer(insurance company). Insurance also provides protection for old age, when the ability to work and earn provides protection for old age, when the ability to work and earn is reduced. Similarly, insurance provides safeguard and during sickness, unemployment, retirement etc. On the other hand, the loss of properties due to theft, fire, accident and other nature calamities is also covered by insurance. Therefore insurance is an appropriate measure to safeguard the individual as well as family in case of financial crises due to uncertainties in the future.

Factors in which Insurance is important to Individual and Family

An individual is a part of any family. Here are the factors which explains why insurance is important to individual and family:
1. Economic Protection
2. Increase in Self-respect
3. Profitable Investment
4. Arrangement for Education and Marriage of Children
5. Improves Standard of Living
6. Provision of Loan
7. Cultivates saving Habits
8. Assures Peace of Mind
9. Eliminates Dependency