What are features of life insurance?

• Issued in the name of the policyholder. ...
• Flexible premium payments. ...
• Customizable tenure. ...
• Customizable sum assured. ...
• Pay-out on death or on maturity. ...
• Ability to assign nominees. ...
• Features an investment component.

• Death Benefits. Life insurance enables individuals to protect themselves and their families, in case of any unfortunate happening in the life of the insurer. ...
• Wealth Creation through Investment Components. ...
• Financial Security. ...
• Loan Option. ...
• Life Stage Planning. ...
• Assured Income Benefit.

• Aleatory. Insurance contracts are Aleatory as promise comes into picture only on occurrence of event. ...
• Adhesion. ...
• Unilateral. ...
• Personal Contract. ...
• Conditional. ...
• Valued or Indemnity Contract: ...
• Utmost Good Faith: ...
• Material Facts:

What are the features of LIC?

What are the main features of whole life insurance quizlet?

Whole life insurance features more guarantees than any other form of permanent life insurance available today. It provides guaranteed death benefit protection for the insured's whole life. No matter when the insured dies, the policy pays the face amount stated in the policy.

What are the 3 main types of life insurance?

Whole life insurance, universal life insurance, and term life insurance are three main types of life insurance.

What are the 7 types of life insurance?

Which of the following is not a feature of insurance?

The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.

What are benefits of life insurance?

Life insurance provides cash to your dependents when you die. This money replaces the income you provided and can be used for anything — funeral expenses, living expenses, college tuition, mortgage payments, and even everyday bills and expenses. This benefit protects your family's financial health.

What are the features of general insurance and give an example of general insurance?

General insurance helps us protect ourselves and the things we value, such as our homes, our cars and our valuables, from the financial impact of risks, big and small. As an example, from fire, flood, storm and earthquake, to theft, car accidents, travel mishaps and even from the costs of legal action against us.

What are the 2 basic types of life insurance?

The two main categories of life insurance are term life insurance (which lasts for a set term) and permanent life insurance (which never expires). Whole, universal, indexed universal, variable, and burial insurance are all types of permanent life insurance.

What are the 4 types of insurance?

What is the main purpose of life insurance?

The primary purpose of life insurance is to provide a financial benefit to dependants upon premature death of an insured person. The policy pays a specified amount called a “death benefit” to the named beneficiary, when the insured dies.

What are the principles of insurance?

In the world of insurance, there are six basic principles or forms of insurance coverage that must be fulfilled, including Utmost Good Faith, Insurable Interest, Indemnity, Proximate cause (proximal cause), Subrogation (transfer of rights or guardianship), and Contribution.

What term life insurance means?

A term life insurance policy is the simplest, purest form of life insurance: You pay a premium for a period of time – typically between 10 and 30 years – and if you die during that time a cash benefit is paid to your family (or anyone else you name as your beneficiary).

Which of these features are held exclusively by variable universal life insurance?

Which of these features are held exclusively by variable universal life insurance? Policyowner has the right to select the investment which will provide the greatest return. The right to select the investment which will provide the greatest return pertains only to variable universal life insurance.

What is the primary advantage of term insurance?

The primary advantage of term insurance is a flexible premium. Term life insurance has a life insurance component and a savings plan. Cash-value insurance is any policy that provides both a death benefit and an opportunity to accumulate cash value.

What does primary and contingent mean for life insurance?

Your primary beneficiary is first in line to receive your death benefit. If the primary beneficiary dies before you, a secondary or contingent beneficiary is the next in line. Some people also designate a final beneficiary in the event the primary and secondary beneficiaries die before they do.

What is life insurance and its type?

A life insurance policy is essentially a contract between an individual and an insurance provider, where the company promises to pay a specified amount of money to the family or beneficiary of the individual, in return for regular payments over a period of time.

What is the most common type of life insurance?

Whole Life

Whole life insurance is the most common type of permanent insurance policy. In addition to providing cash benefits to your beneficiaries upon your death, the coverage comes with guaranteed cash value during the life of the policy.

What is the difference between life insurance and term life insurance?

Term life insurance provides coverage for a set period of time, typically between 10 and 30 years, and is a simple and affordable option for many families. Whole life insurance lasts your entire lifetime and also comes with a cash value component that grows over time.

What is the difference between life and non-life insurance?

Life insurance provides a lump sum amount of sum assured at the time of maturity or in case of death of the policyholder. Non-life insurance policies offer financial protection to a person for health issues or losses due to damage to an asset.