Which of the following is major feature 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.

• Sharing of Risk. ...
• Co-operative Device. ...
• Value of Risk. ...
• Payment at Contingency. ...
• Payment of Fortuitous Losses. ...
• Amount of Payment. ...
• A large number of Insured Persons. ...
• Final Words.

What are the 4 major types of insurance?

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 is a major advantage of insurance policies?

If you have a policy (or policies) of that size, the people who depend on your income shouldn't have to worry about their living expenses or other major costs. For example, your insurance policy could cover the cost of your children's college education, and they won't need to take out student loans.

What are the three benefits 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 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 main 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.

Which of these is considered a major tax advantage of life insurance?

Which of these factors help determine an insured's life insurance premium? ( One of the major tax advantages of life insurance is that the beneficiary generally does not pay income tax on the proceeds.)

What are the 4 types of life insurance policies?

What is life insurance and its types?

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.

Which of the following is not the type of life insurance?

From the given alternatives term isurance is not a type of life insurance product. Term life insurance, often known as term assurance, is a type of life insurance that offers coverage for a set period of time (the applicable term).

What are the 6 major types of insurance?

The six most common types of car insurance are auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments, and personal injury protection.

What are the 2 major classification of insurance?

The types are: 1. Life Insurance 2. General Insurance.

Is life insurance tax advantaged?

Life insurance gives you the ability to transfer a policy's death benefit income-tax-free to beneficiaries. No matter how big the death benefit is—$50,000 or $50 million—your beneficiaries won't pay a single cent of income tax on the money they get.

Is life insurance considered inheritance?

Life insurance is not considered to be taxable income in the way that an inheritance can be taxed. While there are ways to avoid inheritance tax (such as through a trust), these taxes can be considerable if your estate is large. By using life insurance instead, the death benefit can go entirely to your family members.

What does a life insurance policy guarantee?

With permanent insurance, your coverage lasts for your entire lifetime as long as you keep up with your premiums. If you're older or have health issues, guaranteed issue whole life insurance can provide a guaranteed way for your family to pay funeral expenses, medical bills, or other expenses after your death.

What is life insurance class 11?

Life insurance is a contract in which the beneficiary is paid a fixed amount of money by the insurer after the death of the insured. The beneficiary uses this money to clear out the debts of the insured and also to meet his/her financial expenses after the death of the insured.

Which of the following is an advantage of whole life insurance over term life insurance?

Is whole life better than term life insurance? Whole life provides many benefits compared to a term life policy: it is permanent, it has a cash value investment component, and it provides more ways to protect your family's finances over the long term.

Which of the following is not included in a life insurance illustration quizlet?

Which of the following is NOT included in a life insurance illustration? Company's mortality table. A life insurance illustration is NOT required to include the company's mortality table.

What are the living benefits of whole life insurance quizlet?

Whole life insurance provides living benefits, including cash values and policy loans. This life insurance policy provides death protection for the insured's entire life, but premiums are not paid for the insured's entire life.