How Life Insurance Turns People to Saving Mode.
Belive it or not Indians investment strategy begins with Life Insurance first. Insurance is one of the favourite option that anybody in India chooses as their foremost option when it comes to saving. Be it poor or rich their first choice is the life insurance and post that they look out for any other option. Many people belive that to enjoy life it is important to secure life first. Even knowing that in case of any mishappening the benefit of the insurance bonuses will be enjoyed by the family member. When it comes to insurance the most common name is government owned Life Insurance Corporation. It is every household name.
Thanks to the Goveenment for introducing the concept of insurance scheme that make LIC so popular in India. It is such a familiar name that even if you ask a illiterate person of the insurance and they call it LIC. This is the common name that brings all the rags and riches, litteate and illeterate to one common platform I e Insured.
I am glad that Government was so concerned of people to saving and introduced LIC. Indirectly they also areanged funding from the public for own investment purpose. They introduced and taught people the need for insurance and made insurance so popular. Nowadays even though many private sectors or banking system comes up with own life insurance plan, but still general public rely on the government based plan of life insurance. The corporation also make it simple for public by bringing new plans at affordable premium for all section of the society. Insurance scheme in India starts with monthly premium of Rs.100 and gets high as Rs.5 Lac or more.
The good thing is that LIC teaches people to save. On getting a handsome return at the maturity of LIC scheme, made people to look out for more other option of saving. People understood now that how LIC utilized the Insurance premium collected from public and invest them in various investment model. Shares, debentures, loans or golds or other option . The LIC invest all the money in other sector and thereby getting good return. Which help them in paying insurer with bonuses. To be honest an insurer would get much less than what insurance company are earning.
On understanding the working model, people themselves started to invest in other option. So it is correct to say that LIC open gate for other saving options. Now apart from the life insurance saving scheme , people now do investment in other option to get healthy return. Thereby building good fortune of wealth for the next generation.
We must acknowledge how LIC made people to save. It is correct to say that LIC is the mother of all saving in India. Nowadays all the insurance scheme are directly related to stock markets. They comes up with option of choosing *debt and equity based option where the public would opt out of their choice so that their premium would be invested there in. The insurance taught people to save more and enjoy life freely and in own terms.
Good to get insured and save more to built a good fortune.
Peace!!
Namaste @steemflow
Posted Using LeoFinance Beta
