Life insurance for the under-privileged
Under-privileged persons are those persons whose incomes are too low to purchase life insurance policies, who have no adequate provision for old age and family security and who become incapable to earn adequate income due to accident injury or disease. For them, four alternatives are generally provided in life insurance, which are i). Industrial life insurance, ii). Disability benefits policies, and iv). Pension plans.
Industrial life insurance
Industrial life insurance is a form of life insurance specially designed to meet the requirements of wage earning population of industry. It may also apply to low income classes of business or even of the population. It may be issued without medical examination. The premiums may be collected by agents on weekly or monthly basis. Industrial insurance should not be confused with social insurance, which means workmen’s compensation, employers, liability, etc.
Purpose
The main purpose of industrial life insurance is to provide at least clean up funds to meet lest expenses of the assured. Since, the amount of industrial life insurance is not much, family protection is not always possible. The second aim is to educate the habit of saving amongst the low income group to meet their contingencies. Weekly premium can be easily saved and it may provide funds to create property.
