What are the benefits of insurance?

Question

As far as INDIVIDUAL is concerned, How insurance benefits the policyholders? Please explain.

Answer 1

Insurance is an excellent investment option – it not only provides the advantage of life cover but also a return on the investment (Bonus etc) based on the risk appetite.
In many countries it also provides tax benefits.
If assets (motor cycle/house/factory etc.) of insured are damaged insurance company provides compensation.

Answer 2

Insurance encourages savings. Now-a-days most of the policies cover maturity benefits. Therefore investing money in insurance provides good amount at the time of maturity.

Answer 3

Loan against Insurance policy:
Insured can take a loan on the policy in case of any emergency –or for purchasing a house, car or for starting new business.