Advantage of Insurance

Advantage of Insurance:Life Insurance has no competition from any other business. Many people think that life insurance is an investment or a means of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past, plus interest. This is so in a fixed deposit in the bank, in national savings certificates, in mutual funds and all other savings instruments. If the money is invested in buying shares and stocks, there is the risk of the money being lost in the fluctuations of the stock market. Even if there is no loss, the available money at any time is the amount invested plus appreciation. If life insurance, however, the fund available is not the total of the savings already made (premiums paid), but the amount one wished to have at the end of the savings period (which is the next 20 or 30 years). The final fund is secured from the very beginning. One is paying for it over the years, out the savings. One Has to pay for it only as long as one lives or for a lesser period, if so chosen. The assured fund is not affected. There is no other scheme which provides this kind of benefit. Therefore life insurance has no substitute.

A Comparison with other form of saving will show that life insurance has the following advantages.

1. In the event of death, the settlement is easy. The heirs can collect the moneys quicker, because of the facility of nomination and assignment. The facility of nomination is now available for some bank accounts, provident fund, etc..
2. There is a certain amount of compulsion to go through the plan of savings. In other forms, if one changes the original plan of savings, there is no loss. In Insurance, there is a loss.
3. Creditors cannot claim the life insurance moneys. They can be protected against attachments by courts.
4. There are tax benefits, both in income tax and in capital gains.

5. Maretability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loans can be raised against the policy.
6. It is possible to protect a life insurance policy from being attached by debtors. The deneficiarie's interests will remain secure.

The following tenets help agents to believe in the benefits of life insurance. Such faith will enhance their determination to sell and their perseverance.

1. Life Insurance is not only the best possible way for family protection. There is no other way.

2. Insurance is the only way to safeguard against the unpredictable risks of the future. It is unavoidable.

3. The terms of life are hard. The terms of insurance are easy.
4. The value of human life is far greater than the value of property. Only insurance can preserve it.
5. Life insurance is not surpassed by any other savings or investment instrument, in terms of security, marketability, stability of value or liquidity.

6. Insurance, including life insurance, is essential for the conversion of many business, just as it is in the preservation of homes.
7. Life Insurance enhances the existing standards of living.
8. Life insurance helps people live financially solvent lives.

9. Life insurance perpetuates life, liberty and the pursuit of happiness.
10. Life Insurance is a way of life.