Question

Why life insurance is considered a contract of assurance?

Answer 1

hey mate



In case of Fire Insurance,the compensation is given only wheninsured suffers a loss due to fire.But in case of Life Insurance,the compensation is paid irrespective of happening of an event.In Life Insurance,the compensation is paid either on death or on expiry of a specific time period whichever comes earlier.Since

hope it helps you..✌️✌️

Answer 2

We can  claim General Insurance, like Insurance on stock, Vehicle Insurance,  Loss on Profit policy on when loss/damage occurs. Or else, we can't claim any damages for it. But Life Insurance will be paid irrespective of the fact we die or not. It can be claimed on earlier of thr two situations : 1) Death of the person or 2) Maturity of the life insurance policy. It assures our life. While there's no assurance in case of General Insurance. So, Life Insurance is called as Contract Of Assurance.