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Saving: Insurance and Deposit Account Essay

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 banks. This scheme of saving by the kids has been long in operation in banks.

Students who receive pocket money should resolve to put away a certain amount in their accounts in a bank. The money thus saved may even be helpful to a certain extent for their future education. Nowadays there are saving schemes for a person’s daughter’s marriage and for the children’s education. There are schemes for doubling a fixed deposit in some years. A person can get monthly interest out of his deposit in a post office. Of course, businessmen who are prosperous can deposit now and then sizeable amounts.

The habit of saving should be cultivated from a young age and as we grow older and older we will have the firm resolve to set apart a certain amount for deposit in a bank or in a pest office. Recently there was a report in a newspaper that the women who have formed an association and are engaged in some business encourage their children to save a certain amount in a recurring deposit account in a bank. This is good news. Every parent, whatever is his or her job, should encourage the children to save a certain amount in a recurring deposit account.

The amount deposited in a recurring deposit account may be Rs. 10/- or Rs. 50/- or Rs. 100/-. When the amount goes on accumulating a student may have a substantial amount in his account at one stage. A student who saves out of his pocket money learns to plan his life even from a young age. Liberal spending and saving nothing is most unwise and this is the cause of a person’s economic crisis sometimes. The golden dictum is that a family should learn to live with the income it has. Going on borrowing and finding oneself in an economic crisis is mismanagement of money.

A student who learns to save will be frugal in the future. As he grows he knows how to spend money wisely. Saving some money for the future is a golden principle. It may be suggested that every school may insist on the students that they should save a certain amount and deposit it in a bank. The school management may deposit the students’ amounts in the recurring deposit account of each student. This will be a great social service schools can do. ‘Little drops of water make a mighty ocean. ’ Save little by little and one day you will have saved a big amount.

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