Indian insurance companies play following roles in Economic development of our country. Saving and Insurance Saving involves refraining from present consumption. The investment can take place only when there are savings. Insurance companies lead to economic development by mobilizing savings and investing them into productive activities.
Are you sure you want to delete this answer? Yes Sorry, something has gone wrong. Currently LIC has no other great role than making life insurance business successful in India. This is the only role an Insurance company needs to and can play in a civilized open economy.
Once the insurance business is undertaken, investments have to take place aoutomatically. This will help economic growth.
But this is no important role. Life insurance is considered by many financial experts to be the foundation of a total financial plan.
Asset Accumulation During our productive earning years, the ability to generate an income is typically our greatest asset. When income is saved and invested rather than consumed, the potential result is asset accumulation, which takes a lead role in helping to assure that current and future economic needs will be met.
The need for immediate cash at death is universal. Final expenses typically include the cost of a last illness—which could span days, weeks or longer—along with funeral and burial expenses.
Death can also create a tax liability requiring immediate funds to take care of it. Debt includes charge card balances, auto and school loans, home equity loans and other installment accounts that had formerly been met by an ongoing income that is now lost. Survivors need money for mortgage or rent payments.
Ideally, funds should be earmarked to pay off a mortgage or make rental payments for a number of years. The need to find replacement income usually is by far the largest and most important consideration.
Even when there is more than one breadwinner, the loss of just one income can be devastating.
Generally, a surviving spouse with young children receives Social Security benefits until the youngest child reaches age Funds may be needed to fill in this drop in income for a surviving spouse. Providing for children with special needs presents its own challenges. While life insurance may be a cost-effective way to help provide money for supplemental needs, careful planning is required.
It is best to work closely with a qualified attorney to make sure good intentions do not have unintended consequences. A need for cash. Depending on the size of the estate, federal estate and income taxes, state taxes and other levies can dramatically shrink assets, particularly money in a qualified retirement plan.
A need for income. And depending on what kind of retirement planning job was done, there may be a need to supplement retirement earnings whether or not the estate owner dies.What we call the Indian Economic Miracle is nothing but the sweat and blood of millions of Indians from the day we got in-dependence, in whatever fractured way, and were left to the vultures of international banking and financial elite.
Jul 02, · Best Answer: Currently LIC has no other great role than making life insurance business successful in India.
This is the only role an Insurance company needs to and can play in a civilized open economy. Once the insurance business is undertaken, investments have to take place leslutinsduphoenix.com: Resolved.
Life Insurance Corporation of India (LIC) was established in to spread the message of life insurance in the country and to mobilise people's savings for nation-building activities.
Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai.
It is the largest insurance company in India with an estimated asset value of ₹ 2,, crore (US$ billion)(). . Union Budget LIVE TV - Watch live budget session from parliament India. Live coverage of finance minister arun jaitley speech & announcement on tax slabs, income tax exemption and more online on leslutinsduphoenix.com The economy of India is the tenth-largest in the world by nominal GDP and the third by purchasing power parity (PPP). Words; 2 Pages; Role Of Lic In Nation Building its future in the Indian insurance market.
"We [private insurers] are becoming an alternative to LIC. If a customer has already bought an LIC plan, his second policy.