Marine insurance fire insurance references annexures
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Life Insurance,fire insurance
The purpose of life insurance is to provide the relatives and beneficiaries of a deceased person with some financial aid and help. Life insurance is a contract between the policyholder and the insurance company. It can be said that the insurance company or the insurer are providing a service to the policy-holder.
Let us take a look at how the system of a life policy works.
The policyholder pays the insurer a premium, which is generally paid on an annual basis. The amount of this premium depends on a variety of factors such as the health of the policyholder, occupation, medical history, and many such factors.
The insurance company pays the “sum assured” to the beneficiaries of the policy at the death of the insured, or at the end of the term
The insured can also borrow money against his own life policy
There are broadly two types of life policies- Term Policy and Whole Life Policy. Whole life policy will pay out whenever the policyholder will die. Term Policy is set for a term i.e. a certain number of years. Here the insurance covers the term and if the insured dies during the term, the policy will pay out. If the insured survives the term then there is no payout.