Life Insurance is a contract under which insurer (Insurance Company) in consideration of premium paid undertakes to pay fixed sum of money (sum assured) on the death of the insured or on the expiry of a specified period (term) of time whichever is earlier.
In case of life insurance, the payment for life insurance policy is certain. The event insured against is sure to happen only the time of its happening is not known. So life insurance is known as ‘Life assurance’. The subject matter of insurance is life of human being. Life insurance provides risk coverage to the life of a person. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy.
To put it in simple terms, insured (policy holder) and insurer (insurance company) with mutual understanding sign a contract and thereby agree to pay...
Insured - agrees to premium towards covering risk (Death in case of Life Insurance)
Insurer - agrees to pay sum assured on death or maturity benefits of completion of specified period.
In case of life insurance, the payment for life insurance policy is certain. The event insured against is sure to happen only the time of its happening is not known. So life insurance is known as ‘Life assurance’. The subject matter of insurance is life of human being. Life insurance provides risk coverage to the life of a person. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy.
To put it in simple terms, insured (policy holder) and insurer (insurance company) with mutual understanding sign a contract and thereby agree to pay...
Insured - agrees to premium towards covering risk (Death in case of Life Insurance)
Insurer - agrees to pay sum assured on death or maturity benefits of completion of specified period.
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