There are a lot of roles insurance companies play in human life’s, the advantage of a policy will depend on the selection you make on your application. it will show up automatically on your schedule
These are the important roles companies plays:
1. Safety and security:
Insurance companies provide financial support and decrease unpredictability’s in business and human life. It brings about safety and security against event. There is always a fear of sudden loss. Insurance prepares a cover against any sudden loss. I.e., in case of life insurance, financial assistance is issued to the family to cover victim’s death. In case of other insurance, security is rendered against the loss due to fire, marine, accidents etc.
2. Generates financial wealth:
Insurance generates fund by gathering premium. These funds are endued in government securities and stock. These funds are profitably employed in industrial development of a country for generating more funds and utilized for the economic growth of the country. Employment vacancies are opened by big investments leading to capital formation.
3. Life insurance encourages savings:
Insurance does not only protect against risks and unpredictability’s, but also provides an investment channel. Life insurance enables regular savings due to payment of systematic premium. Life insurance provides a mode of investment. It develops a way of saving money by paying premium. The insured get the lump sum amount at the maturity of the contract. Thus, life insurance encourages savings.