1. insurance provides an income stream to replace a portion of the insured persons pre-disability income when he is not able to work because of sickness or injury.
2. insurance provides for the expenses incurred for performing surgeries and the hospital stays of the insured
3. Banks will require the borrower of housing loan to purchase insurance for protection so that in the event of the untimely death of the borrower, the insurance company will pay off the outstanding housing loan of the borrower, and the bank can release the ownership of the house to borrowers beneficiary.
4. insurance will indemnify the policyholder against any loss or damage to goods conveyed on land by road or rail, or by boat for short journeys.
5. insurance provides one lump sum of benefit payment upon the insured person being diagnosed contracting any of the 36 diseases specified in the policy.