A life insurance policy vouchsafes security for your dependents after your demise. They can eek out their living even at the absence of other active source of income. Moreover the amount that you are going to get at the end of the policy period in a term life policy also makes it a rewarding investment.

Life Insurance Policy is a form of security for the person who insures his life and his family. Life insurance policies have helped trade and other economic activities to flourish in a great manner. It has generated lots of job opportunities. It is looked upon as a lucrative career option. Life insurance companies have also entered the international business scenario.

A) Early Deaths

The mortality rate is experiencing a declining trend in many parts of the world. However it is also important to note that the age at which People die is also ever decreasing. Some reasons for this include unhealthy living style, stress, pollution, and some natural calamities. This necessitates people to make adequate measures to yield income for their family and dependents. This could be a serious concern if the insured happens to be the sole bread winner. Some individuals see this as an option to plan their retirement.

B) Advancements in Health Care

The mortality rate has declined rapidly even though the fact remains that the number of people who die at an early age is on the increase. This is mainly due to the advancement in healthcare and the awareness on medical facilities. This results in an increased spending at an old age. This increased spending is also due to increase in the costs of living apart from paying expensive medical bills. Unless they invest in Life insurance or other forms of insurance like health insurance it becomes next only to impossible to meet the financial demands especially during the old days.

C) Increase in the Cost of Living and Spending Power

The purchasing power of the consumers and the standard of living has experienced a steep rise over the years. The increase in National Income and gross domestic product are partly responsible for this. Individuals incur many unexpected expenses due to the growing needs. Insurance comes in handy to meet such an unexpected expense. It also makes sure that an individual is able to meticulously plan his finances. Insurance option is more or less an interest free loan. An individual can cancel his insurance policy and obtain a huge amount if it is imperative in meeting an urgent expenses and he does not have alternative sources for finance. Life insurance companies therefore do the needful to consumers.

D) Tax Concessions

Income tax concessions are available to individuals and corporate houses who adopt insurance policies. Many have been making investments in Insurance with the sole aim of enjoying tax benefits. This naturally increases spending power. Since the investments increases the economic activities in the country automatically increases.

E) Best Option for Salaried Youth

Insurance is by and large regarded as one of the savings scheme. Students who earn while studying and those who take up full time employment after their studies see insurance as a profitable scheme to regulate their savings. Apart from tax concessions life insurance entails individuals to enjoy more benefits as they have special and attractive schemes for this segment.

F) Facilitates Wealth Creation

Life insurance is not only meant to provide financial security or meet an unexpected expense. Life insurance also helps individuals to plan wealth accumulation. Suppose an individual posses huge sum of money and wants to invest it on a later period for some purpose like purchasing a huge plant, funding the business started by his heir then life insurance will help him to realize that.

G) Provides for Means to Repay Loans

Supposing you buy a property, on raising a loan, you need to make adequate finances for repaying them. One good option will be insurance whereby you can pay the premiums regularly and collect the policy amount after maturity. There is another advantage as far as this is concerned. If your house is damaged or burgled you will be eligible to reimburse the expenses incurred to rectify them if you have taken an additional home insurance/ burglary insurance as the case may be. The same strategies can be used for other loans like student loans, business loans etc.

H) Improves Financial Credibility

Insurance policies indicate the financial strength of an individual or company. This will help them to raise the necessary finances as their credit reports are stronger. Apart from helping to secure the necessary finance an insurance policy also ensures that an individual or a business house is protected from unexpected loss as long as they are covered in the schemes.

I) Flexible on Coverage and Premiums

Most of the life insurance policies allow the consumers to alter the coverage and premium with some restrictions and conditional clauses. This is beneficial to the consumers if they feel that they are unable to afford a particular sum over a period of time or are able to afford more money. Similarly if the consumers feel that they don't require coverage on particular areas or if they feel they require more coverage insurance policies are flexible enough to accommodate them.