Life insurance has no competition from any other business. Many people think that life insurance is an investment or a means of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past, plus interest. This is so in a fixed deposit in the bank, in national savings certificates, in mutual funds and all other savings instruments. If the money is invested in buying shares and stocks, there is the risk of the money being lost in the fluctuations of the stock market. Even if there is no loss, the available money at any time is the amount invested in not the total of the savings already made, but the amount one wished to have at the end of the savings period. The final fund is secured from the very beginning. One is paying for it over the years, out of the savings. One has to pay for it only as long as one life or for a lesser period, if so chosen. The assured fund is not affected. There is no other scheme which provides this kind of benefit. Therefore life insurance has no business.
This is not similar to a hire purchase scheme. In a hire purchase scheme, the instead purchase is effected immediately, but the price is paid in installments later. However, in the event of death, the balance installments are not excused. They have to be paid by the surviving family. In the case of life insurance, the premiums cease on death. There are no outstanding installments. There is no financial arrangement that can equal the benefits of life insurance.
A comparison with other forms of savings will show that life insurance has the following advantages.
In the event of death, the settlement is easy. The heirs can collect the moneys quicker, because of the facility of nomination and assignment. The facility of nomination is now available for some bank accounts, provident fund etc.
There is a certain amount of compulsion to go through the plan of savings. In other forms, if one changes the original plan of savings, there is no loss. In insurance, there is a loss.
Creditors cannot claim the life insurance moneys. They can be protected against attachments by courts.
There are tax benefits, both in income tax and in capital gains.
Marketability and liquidity are better. A life insurance policy is property and can be transferred or mortgaged. Loans can be raised against the policy.
It is possible to protect a life insurance policy from being attached by debtors. The beneficiary’s interests will remain secure.
The following tenets help agents to believe in the benefits of life insurance. Such faith will enhance their determination to sell and their perseverance.
Life insurance is not only the best possible way for family protection. There is no other way.
Insurance is the only way to safeguard against the unpredictable risks of the future. It is unavoidable.
The terms of life are hard. The terms of insurance are easy.
The value of human life is far greater than the value of property. Only insurance can preserve it.
Life insurance is not surpassed by any other savings or investment instrument, in terms of security, marketability, stability of value or liquidity.
Insurance, including life insurance, is essential for the conservation of many businesses, just as it is in the preservation of homes.
Life insurance enhances the existing standards of living.
Life insurance helps people life financially solvent lives
Life insurance perpetuates life, liberty and the pursuit of happiness.
Life insurance is a way of life
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