A policy holder takes up an insurance policy because of following aims:

1. Family protection. The main aim of life insurance is to provide economic protec­tion to the family of the policy holder espe­cially in case of untimely death.

2. Economic help in old age. The money earned in this scheme can be reinvested in old age or after retirement. The interest thus earned makes policy holder economically sound.

3. For education or marriage of chil­dren. The money invested in this scheme helps the policy holder in his children higher education and marriage.

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4. For property tax. The money received after the death of policy holder helps in pay­ing property tax.

5. Relief in income tax. The policy holder gets rebate in income tax on the payments of premium amounts.