Saving: Insurance and Deposit Account

Topics: Insurance, Fractional-reserve banking, Deposit account Pages: 2 (769 words) Published: May 14, 2013
savingSaving for the Future (579 words)
The Life Insurance Corporation of India, which is the biggest Insurance Corporation of India, encourages people to save for the future. The habit of saving should be ingrained in man but there is more people nowadays squandering money than saving it. Even an ant has the sense of saving; a beaver in a forest saves food little by little for the rainy season. The rainy season for the animal indicates for man difficult times of need. If you go on saving you have always something to bank upon and you are never in need. The LIC established by the Government of India is the largest mobilize of the savings of the people. The LIC is perhaps the oldest organization which mobilizes money from the people and lends a portion of it for constructive activities of the nation. Many years ago there were small insurance companies and they were all integrated into one composite organization. There are agents in each LIC branch who go out to the people and companies, talk to them and book insurance policies from them for a particular period. After the stipulated period of insurance is over the sum assured is paid to the insured person with a sizeable amount of bonus. This is a great benefit to the person who takes an insurance policy. The amount realized after the policy matures may be helpful for a person’s daughter’s marriage, for the educational expenses of his children, for buying a house etc. The concept of saving was first promoted by the insurance companies which have done a great service to the people. The earning members of a family have no tendency to save some money out of their monthly income. Though this message of the importance of saving has been emphasized often people are not strict in observing the habit of saving. If from a young age students who get some pocket money learn to save a certain percentage of it every month, it will be helpful to them and to their parents. Kids are allowed to have recurring deposit accounts in...
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