- 1.Necessity of Insurance
● Protection of property
Due to insurance the personal and business property is protected from natural losses such as accident, fire, etc.
●Solve the social problem
Insurance is useful device for solving the social problems. In cash of death provides finance to his family compensation is available to overcome the industrial injuries and road accident.
●Gives sense of security
At every moment there is a chance of loss in business. Due to insurance risk is a transferred to the insurance company and gives the sense of security to businessman.
The insurance companies provided the jobs to thousands of people. In this way the problem of unemployment is reduced.
Life Insurance is also a good way to systematically save and build wealth for the future. It is an ideal long-term savings tool that can help you meet your financial needs after retirement or even fulfil a future goal like your child’s marriage. Thus, with life insurance, you get double benefits of Protection as well as Savings.
Under the Income Tax Act, 1961, you can save tax on your hard earned money by using our innovative Life Insurance products and solutions. You can get tax advantage at different stages of your life insurance policy.
Stage 1: Entry Advantage – You receive tax benefits* on your premium payments, under Section 80C, 80CCC and Section 80D.
Stage 2: Earnings Advantage – The growth on your money is not taxable.
Stage 3: Exclusive Switching Advantage – You can make completely tax-free debt-equity Switches
Stage 4: Exit Advantage – You also receive a tax free Maturity Benefit
- 2.Life Insurance and Non-life Insurance
- ● Life Insurance :
Life Insurance is the protection against the loss of income that would result if the insured dies. In the event of a death, the named beneficiary or beneficiaries will have access to compensation. Generally, the beneficiaries are the families of the insured, however, they can also be partners or creditors.
- ● Non-Life Insurance :
non-life insurance or General insurance , including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determined to be life insurance.