Why Insurance Awareness is Needed?

The only thing that is predictable for future is its unpredictability. The very next moment can be the end of everything. And this is one of the most important reasons why people opt for Insurance. With the passage of time insurance industry has grown by leaps and bounds. Today the word insurance is associated with every valuable, be it perishable good or the invaluable human life.

Insurance is actually a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party. Insurance in India has its history dating back 1818, when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European communities.

Ø To provide security
Ø Old-age pensions
Ø As an investment or saving mechanism
Ø As a collateral for loans
Ø For tax benefits

Functions of Insurance
Ø Provide protection
Ø Collective bearing of risk
Ø Provide prevention of losses
Ø Means of saving & investments

Life insurance and its boundless benefits

Below are some ways how a life insurance plan can help:

• It will protect the future of your family by offering income for paying expenses like higher education, care for parents or children, a mortgage and emergency demands which may crop up as the household gets its financial footing.

• It will protect you as well as your family members against financial risks with your financial commitments and life circumstances changing from time to time

• It will help you leave a legacy by making extra wealth for you and your family, offsetting the estate tax's impact or a charity that you wish you support

• It will help in protecting a business in different ways like unlocking your business's value for your retirement, implementing your succession plans or covering up the loss of an important employee

Insurance not getting its due attention?

The irony is in a country like India, people seem to be more concerned about the insurance of their vehicles than their own life. Introduction of Goods and Services Tax has also levied 18% tax on policy premiums, like health plan and term plan(on other plans also it is 4.5%)making it little bit more difficult for its takers. In a time, when Government claims to take into consideration every think that contribute to its growth, it should not overlook its most important asset, i.e., human resource. It is high time the Government organized an insurance awareness campaign to its people and make insurance premiums more and more lucrative.
                                                                                       ----Amit Kumar Sinha, Wealth Manager, LIC of India, Patna DO-II