Explain the importance of life insurance.

Question

Eduzip Academy · Accepted Answer

The importance of life insurance are as follows :

1) It provides protection to the family at the premature death or gives adequate amount at old age when earning capacities are reduced.

2) It is a sort of investment because a lump sum amount is returnable either at the death or after the expiry of the contract.

3) It encourages savings, providing a sense od security.