Reasons, why a life insurance policy may be taken, are:
(i) As a provision for the dependence for the assured
(ii) In order to obtain lump sum after retirement
(iii) As a protection for old age
(iv) As part of people’s investment if it is with interest
(v) As security for loan obtained or houses purchased
(vi) As assurance and motivation to workers
(vii) It assures a pattern of a firm that his capital will be repaid when he die
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