Following are the benefits of life insurance policy
(i) It provides protection to the dependents of the assured in case of untimely death.
(ii) Through a life insurance a person can make provision of his old age.
(iii) It encourages people to save money compulsorily.
(iv) It mobilises the public savings and channelises them in productive investments for the economic development of the country.
(v) These policies can be used as a collateral security to raise loans.