As Insurance has a lot of benefits it also had some disadvantages. so now am going to list 5 advantages & disadvantages of buying insurance. Insurance is providing compensation cover for specific damage or loss in return for the payment specified premium.
1. Always Insurances tries to less the compensate to increase their profit..
2. Insurance doesn't support bank facility..
3. Insurances attempt to not give the money away that could collapse at any moment.
4. Insurance take time to pay out the financial compensation..
5. Insurance doesn't have Guarantee for all kinds of damage or losses..
1. Insurance will make you free from income tax & other cash value withdrawal taxes
2. Helps to reduce inflation and risks..
insurance can fully reduce inflation and risks for both companies & individuals especially for new businesses.
3. Encourages save & Permits loan..
Permits loan :- The first factor that the creditor considers before accepting or rejecting loan application, is that the applicant has an insurance? to insure that they will get their money if something has happened to the debtor. where as Encourage of saving means is Buying an insurance is starting continues saving but you can't withdraw at time whatever you want.
4. Operates business smoothly..
5. Economic Protection..
Insurance provide economic protection for their liability , property , business and manys the insurance covers the policyholders cost of legal action against an individual or institution.