What is life insurance and advantages of life insurance?

Maria Rodriguez (6 Points)

31 January 2023

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Eswar Reddy S (CFO- at NHTF) (53919 Points)
Replied 01 February 2023

If key person in the family who is the income generating source dies then it will be difficult for family to survive. Considering this govt has introduced LIC .

So LIC pays assured amount in the event of death or disability.

Now many private insurance companies came to get the insurance policy at competitive prices with multiple advanti

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Sophia James (9 Points)
Replied 01 February 2023

Life insurance are contracts between one person and an insurance company where the person has to pay a premium. The insurance company provides a monetary benefit to the individual's beneficiaries upon his death. A life insurance provides financial protection to the policyholder's family members in case of his/her untimely demise.

There are several advantages to having life insurance, such as:

Financial protection: Life insurance provides a financial safety net for your loved ones in the event of your untimely demise. It can help cover expenses such as funeral costs, outstanding debts, and living expenses.

Peace of Mind: Knowing that your loved ones will be taken care of financially can provide a sense of security and peace of mind for both you and your family.

Tax Benefits: Life insurance plans can provide tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

Investment Opportunity: Some life insurance plans, such as endowment policies, provide an investment component. This can help you grow your savings and achieve your long-term financial goals.

Flexibility: Life insurance plans come in a variety of forms, such as term insurance, endowment policies, and whole life insurance