The United Nations Declaration of Human Rights 1948 provides that “Everyone has a right to a standard of living adequate for the health and well being of himself and his family, including food, clothing, housing and medical care and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood or other lack of livelihood in circumstances beyond his control.
When the bread winner dies, to that extent the family’s income dies. The economic condition of the family is affected, unless other arrangements come into being to restore the situation. Life insurance provides such an alternate arrangement. If this did not happen, another family would be pushed into the lower strata of society. The lower strata creates a cost on society. Life insurance helps to reduce such costs. In this sense, the life insurance business is complimentary to the state’s efforts in social management.
As per the law and the directions of the regulatory authorities, insurance companies in country are obliged to extend insurance benefits to economically weaker sections of the society in the unorganised sector.
Insurance as Social Security Tool
The United Nations Declaration of Human Rights 1948 provides that “Everyone has a right to a standard of living adequate for the health and well being of himself and his family, including food, clothing, housing and medical care and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood or other lack of livelihood in circumstances beyond his control.
When the bread winner dies, to that extent the family’s income dies. The economic condition of the family is affected, unless other arrangements come into being to restore the situation. Life insurance provides such an alternate arrangement. If this did not happen, another family would be pushed into the lower strata of society. The lower strata creates a cost on society. Life insurance helps to reduce such costs. In this sense, the life insurance business is complimentary to the state’s efforts in social management.
As per the law and the directions of the regulatory authorities, insurance companies in country are obliged to extend insurance benefits to economically weaker sections of the society in the unorganised sector.