There are some of the salient features of life insurance such as financial security, saving tool, investment tool etc. Some of the relevant features are pointed below in brief.
- The main feature of life insurance is its ability to provide financial security to the dependents of the insured person during the loss of income (in case of his/her premature death).
- It also serves as the long-term saving tool for the insured person during the case of maturity of the policy or to the dependents of a person during case of his/her premature death.
- It also acts as investment tool for the future of life insurance policyholder or insured person because it helps to overcome the effect of inflation.
- Lifc insurancc also has rangc of products that assures to pay the amount periodically after the retirement of the policyholder; hence life insurance act as retirement benefit plan as well.
- There is a need to secure the future of the dependents of the earning person of a family as the family is dependent on earning person. So life insurance reduces the risk of loss of income of the insured person in case of his/her early death and provides a source of income for the family.
- Moreover, it acts as source of social security for the insured person as the total amount received by life insurance policyholder after the maturity of the policy can be used for education or marriage of children.
- Furthermore, life insurance has a provision for tax savings under Section 80C.
For citing this article, use:
- Haider, F. (2019). An Analysis of Consumer Cluster opting core Life insurance Products.
