What are the advantages of Investment in Life Insurance Schemes?

Advantages of Investment in Life Insurance Schemes:
(1) Protection to family members through financial support in the case of death of
policyholder.
(2) Investment in life insurance scheme serves as a provision for old age (maintenance,
medial expenses, etc.).
(3) It acts as a method of compulsory saving over a long period out of regular income.
(4) Investment in life insurance provides loan facility from banks.
(5) LIC now gives bonus to policyholders on yearly basis. This adds to the maturity value
of policy.
(6) Investment in life insurance scheme -gives tax benefit. This tax benefit is available
even when the policy is taken on the name of investor’s wife, son or daughter.
(7) Investment in life insurance scheme gives mental peace to investors in this age when
our life is exposed to various risks, uncertainties and dangers.
(8) Investment in life insurance provides comfortable and financially independent life
after retirement. This is a special benefit during the old age to life insurance
policyholders.
LIC issues different life policies such as whole life policy, endowment policy, money back
policy, etc.
An investor can select any policy considering his age, monthly/ annual income and
capacity to save. Investment in LIC has wider significance. It is not merely for monetary
benefit but for security of investor and his family members. Recently, LIC has introduced
“Jeevan Anand Retirement Benefit Package” which offers many benefits to investors.
Jeevan Shree-1 and LIC Bima Plus are two more beneficial investment plans started
recently by L1C.