What is life insurance meaning? Life Insurance is a contract which is edited between an insurer and an insurance company. The insurance company guarantees that. If the life insurer dies a specific amount will be given the heirs of the insured. Under the terms of the contract, sometimes the person who is seriously ill, the insurer gets the money. The insurer usually provides a fixed amount of money to the insurance authority at one time or at a particular time.
The benefit of the insurer is “mental peace”; because he knows that after his death, his heirs would not be facing problems. This method is also used to get financial benefits after retirement If the insurer accepts insurance carefully and mention this in the terms and conditions.
Life insurance meaning is a legal contract and the terms of the contract are limited by insurance coverage. Here the special conditions are written and his liability falls on the bidders; Such as suicide, death happens due to war the insurer does not pay any money to the heir to the insured.
The life-dependent agreement is divided into two main categories:
• Security Policy
• Investment Policy
The insured person, by paying the premium to insurance companies or institutions is free from all possible damages and numerous insured people or from the organization, Insurance companies increase capital by collecting premiums. By saving money privately, it is possible to stay away from the possible risk of anxiety In addition to co-operation of the insurer.
Life insurance meaning also insurance eligibility. To ensure by private companies, the principles of seven insurances must be followed
- Similar losses may be encountered many such elements exist. As an insurance company compensates for damage, therefore, there must be plenty of material that may face such kind of damage in reality. For example, ‘Lloyds of London’ is a popular artist and Players life and their vital organs famous for insurance. Here are some of the components of the Lloyds of London insurance that is available in real life and these elements are not the same, they can be dropped into the same class.
- 2 specific damages: It means insurance companies are only one or multiple there will be contractual obligations for specific damages. For example, if a car is just fire insurance then the car is lost the insurance company is not obliged to pay any compensation.
- Accidental damage: That is, the amount of will be damage it must be out of control. If there is any loss due to neglect then it can’t be getting compensated.
- Large size loss: The amount of loss must be reasonable, subject to the insured person.
- Premiums must be affordable: However, no matter how large the potential losses Insurance premium must be within the reach of the insurer.
- The damage of amount must be quantitative: Since all the damage can’t be compensated and insurance companies can only compensate for the money order, Therefore, we need to measure the amount of potential damage.
- In case of natural calamities, the amount of compensation will be limited: For example, due to the massive damage caused by floods or earthquakes, Insurance companies this amount of compensation is avoided because such a huge amount of compensation is not possible for any single insurance company.
1 Principles of Final Decision
2 Insurance policies of insurable interest
3 compensation policy
4 Replacement policy:
5 Participation Policy
6 Loss of loss policy:
Types of insurance:
Naval or marine insurance
Social and other types of insurance
Life insurance is a strategy to handover the risk of mortality, loss, or avoid danger. The death of the insurance acceptor or borrowers in old age or in the modern age, life insurance works as an effective way to get rid of the financial loss of his family members.