‘Life insurance is a saving scheme along with protection’. Explain.ORThe main objective of Life insurance is to fulfill specific social objective of providing financial companies. Give reason.

‘Life insurance is a saving scheme along with protection’. Explain

1.	‘Life insurance is a saving scheme along with protection’. Explain.ORThe main objective of Life insurance is to fulfill specific social objective of providing financial companies. Give reason.
Answer» Every person feels that when he reaches old age or is no more in this world his family should not be burdened under financial stress. He also feels, education, daily expenses, etc. his family needs like should not be compromised in case he cannot earn further or if he dies. Owing to all these reasons a person buys a life insurance. He pays a fix amount i.e. premium periodically to the insurance company until his insurance policy matures or he dies. This premium is returned either to the insuree (in case of endowment plan) or his family along with interest. As a result the invested money in insurance becomes a saving scheme whose benefits can be reaped in later years. By doing so the insurance company fulfills its social objective of providing financial compensation as promised.