Life insurance refers to the protective cover on the life of the individual believer and the provision of financial benefits in case of loss of life of that person within a certain period. This policy is a blessing and a curse.
So that a comparison is made between the advantages and disadvantages accumulated in the following discussion.
Advantages
Are listed some of the different benefits of the insurance policy below:
1. Mental peace
The most important benefit of life insurance is that it ensures mental peace. When a person goes for life insurance, fell and his family fears of the future. Thus, it ensures mental peace.
2. Financial Security
Life insurance policy and provides economic security to the family of the policyholder in the event of death of a breadwinner. Upon the occurrence of this unfortunate incident, and forced the family with monetary crisis. But by taking advantage of a life insurance policy, this problem is to solve the liquidity crisis of a lump sum paid by the insurance company.
3. The loan in case of need
There are circumstances in the life of the individual needs funds, but is unable to be obtained from different sources. And a life insurance policy also provides a solution to this problem and can be taken against the policy of loans and is not necessary to pay the amount as is deducted from the value of the loan to the police on maturity.
4. Cover for whole life
And a life insurance policy provides coverage for the entire life of the policyholder. It also provides protection in cases of serious illness.
5. Tax-free source of savings
In addition to being a source of savings that are completely exempt from tax
6. Alleviate some of the source of liability
And a life insurance policy and provides a great source to meet the specific needs and liabilities such as loans and mortgages.
7. Maintain the standard of living
And a life insurance policy and help to maintain the standard of living of the family, even after the death of a breadwinner through provision of financial benefits for the family.
8. Enhance coverage
Policy provides coverage enhanced through the provision of medical benefits.
Disadvantages
Disadvantages of life insurance are as follows:
1. Expensive
Life insurance can be very costly, especially when they suffer from the disease, and considered by insurance companies and high-risk due to some reasons such as aging, etc..
2. Not relevant in the case of non-family person
And a life insurance policy is not relevant for the individual who is not having any family or dependents
3. Increase in insurance premiums
Increases due to a distinct increase with age. But income is decreasing gradually, making it difficult to achieve balance.
4. Does not work in the case of a long life
Some policies do not provide any benefit to the policyholder cash to survive the policy term. In that case, you are wasting the amount paid for insurance premiums.
From the above discussion, it becomes clear that, although life insurance is a blessing and a curse, but its advantages outweigh its disadvantages. But at the same time, it depends on the requirements of the individual.
Source:http://danandtravis.com/life-insurance-advantages-vs-disadvantages/
