General and Non-Life Insurance is useful for Property, Travel, Vehicle, Heath etc. It provides coverage for any risk related to Property, Travel, Motor and other types of losses. In this topic, we are going to discuss about benefits of insurance to individuals and company along with top 10 benefits of insurance to society and economy as well. This will give you greater understanding about insurance benefits.
Mostly everybody assumes benefits of Insurance policy as per individual knowledge. Some people get information regarding policies plans from insurance agents and representatives. Apart from these, there are several other benefits of Insurance plans which are not known by people. This can be because, there is lack of awareness about insurance products. Let’s look into Benefits of Insurance for various sectors.
There are different types of insurance which varies as per your requirement. General insurance gives protection for your assets like property, vehicle, etc. Travel Insurance protect your health by providing health insurance policy, when you are travelling from one place to another. Be aware for Insurance benefits offers as it is important in today’s life.
Best Benefits of Insurance to Individuals, Businesses and Companies
Let us understand some of the benefits of insurance to company as well as benefits of insurance to individuals in detail.
- An unmatched benefits of insurance to business and individual is that, these policies can be provided as mortgage to lender in case of financial emergency.
- Life insurance helps to grow company and individual’s savings by systematically investing money in form of premium which in return guarantees them lump-sum amount at the time of maturity of policy.
- For few insurance services and products are mandatory based on type of job and risk involved in it. Example for import and export of goods, insurance is necessary.
- Important benefits of insurance to company and person are by providing security, assurance and safety in case of an emergencies. Even unexpected accidents, damages within day to day lives in form of financial assistance which is an important benefit of insurance policy.
- There is guaranteed tax benefit for the premium paid by policy holder. Even company as well as individual can claim for exemption, when filing income tax returns.
- Insurance provides relief to policy holder from anxiety of Loss which allows them to concentrate in their work effectively.
- Pension and retirement plans are the best benefits of insurance to individuals life. As it provide secured Income for rest of your life.
This gives you a highlight about this topic. These were some of the best insurance benefits in companies. Unbeatable benefits of insurance to individuals also improves your standard of living.
Top 10 – Benefits of Insurance to Society
It is important that you understand what is insurance initially. As insurance is not only the matter for businessman or individual. There are number of benefits of Insurance to society as well. Let us look into it.
- Insurance works as a risk control device for a society. Insurance always provides security and financial help need in many circumstances. For example, in case of unexpected loss, damages which makes life distress, fear, etc.
- Insurance benefits to society as a risk mitigation tool as it distributes risks among everyone. Insurance constantly safeguard people risk of loss, damages, uncertainties.
- For any Infrastructure development, Investment is provided by Insurance companies.
- Insurance offer medical support which helps in controlling risk in health towards society. A lot of companies have insured their labors or employees as they could fall unwell, sudden disease or unexpected accidents.
- Insurance provides commission which helps unemployed people like homemaker, students, retired persons to earn some income by working as a representative.
- Security is an important benefits of insurance to society offered by Insurance companies.
- Life Insurance provides security to human being in case of death or diseases. Whereas General Insurance provides security of assets in case of fire, earthquake, theft, etc. Thus, Insurance supports to smoother your business financial requirement.
- In case of death of policy holder, dependents get first beneficiary of insurance to society. This give financial support to live a good and standard life in their society.
- There is an increase in employment opportunities which plays an important benefits of insurance to society. As new private Insurance companies have emerged in market.
- Usage of different types of Insurance products are high in Trade and Business sector.
It is critical that importance of insurance is a matter of awareness. Employment is always been a key element in growth of your society as well as economy.
Top 10 Benefits of Insurance to Economy
Any country development is most dependent on the growth of a business from all the sectors. To boost the economy of a country, insurance companies also plays an important role in this process.
- Insurance premiums generates revenue for insurance companies. This indirectly benefits of insurance to economy. Premium collected by insurance companies are then invested systematically in government bonds, securities, equities etc which again helps in financial stability of a country.
- Insurance have made foreign trade and foreign investment accessible. Many countries such as USA, Europe, UK, India and Canada have permitted foreign direct investment within the insurance sector.
- Unemployment is a major problem in almost all developing countries and day by day there is rapid increase of unemployed individuals in developing countries. Insurance products and services also play a key role in generating employment. These insurance benefits to economy of the country by recruiting new employee.
- One more important benefits of insurance is that, it relieves government from the burden of providing subsidies to the family, in the event of sudden death of earning member from the family.
- Development of any country is measured by Gross Domestic Product (GDP). Insurance companies provides different types of insurance plans to individuals as per their requirement. Those premium collected form insurer are then invested in government bonds as well as financial markets. Such activities by insurance company finally result in increases of GDP of the country.
- Insurance companies mainly functions in activities concerning to financial system which also lead to foreign exchange trades. This benefits of insurance to economy by maintaining currency valuation and by covering risk.
- Government earns revenue through Tax Paid by Insurance company out of their profit which helps to grow economy.
- Now people from another country can also access and buy various types of insurance, which is really a greatest advantage for any country. For Example: usage of property insurance, travel insurance benefits with security to company as well as individual. This also helps to reduce economy burden for any government of a country.
- Insurance companies helps to improve capital market of a country. Many government allows these companies to invest some percentage of funds into capital market, which generates huge returns and helps to grow economy.
- Insurance products mixed with equity saving schemes, mutual funds, retirement funds as well as real estate investment, acts as a greatest investor into financial market. This affect positively on the economic development plus globalization of the economy.
We have learned a lot today. Here we have seen benefits of insurance to individuals and businesses, benefits of insurance to society and economy. This would have really given you better understanding on insurance benefits under various areas.