Mataracy
VIP Contributor
Life assurance is different from other classes of insurance contracts in a number of ways:
(a) While we refer to other classes of insurance as "Insurance contract" we refer to life business as "Assurance contract".
(b) The insured lives yo enjoy the benefit of the premium hr has paid by way of compensation in event of loss or damage in general business. The benefit of life contract is mostly enjoyed by the estate or dependants of life assured.
(c) There is the option of making life assurance premium payable monthly, quarterly, half yearly, and yearly while general business is often characterized by single annual premium payment (No premium no cover).
(d) Life assurance is not an annual contract but rather over a term of years with an option to renew or terminate at each premium due date vesting in the policyholder only. Other classes of insurance are usually on annual basis except those of on long-term agreement.
(e) Paid-up polices:- This is an alternative to the surrender value in some policies. In this case the premiums ceases, the policy continues, but on maturity a smaller sun than would originally have been paid will be due to policyholder. This opportunity does not exist in non-life policies.
(f) possession of life assurance policy can be used to obtain relief on income tax and for collateral in securing loans from financial institutions while possession of non- life policies cannot be used for such.etc.
These are part of the feature of Life assurance and your own contribution is highly welcome. And I know it will realm benefit us.
(a) While we refer to other classes of insurance as "Insurance contract" we refer to life business as "Assurance contract".
(b) The insured lives yo enjoy the benefit of the premium hr has paid by way of compensation in event of loss or damage in general business. The benefit of life contract is mostly enjoyed by the estate or dependants of life assured.
(c) There is the option of making life assurance premium payable monthly, quarterly, half yearly, and yearly while general business is often characterized by single annual premium payment (No premium no cover).
(d) Life assurance is not an annual contract but rather over a term of years with an option to renew or terminate at each premium due date vesting in the policyholder only. Other classes of insurance are usually on annual basis except those of on long-term agreement.
(e) Paid-up polices:- This is an alternative to the surrender value in some policies. In this case the premiums ceases, the policy continues, but on maturity a smaller sun than would originally have been paid will be due to policyholder. This opportunity does not exist in non-life policies.
(f) possession of life assurance policy can be used to obtain relief on income tax and for collateral in securing loans from financial institutions while possession of non- life policies cannot be used for such.etc.
These are part of the feature of Life assurance and your own contribution is highly welcome. And I know it will realm benefit us.