Hi friends
welcome to life Insurance Corporation of India.
I want
to clear all your doubts and questions that arises in everyone’s mind when they
heard
‘Life
Insurance’. So let’s get to know about life insurance and its standard
definitions so it will
Clear all
the doubts. I have studied fully about life insurance and its system will give
you things about it step by step.
These are
simple definitions of Life Insurance.
Life Insurance: “Life Insurance is a contract between an insured
and an insurer, In such cases insurer promises
to pay a designated beneficiary a sum of money
in exchange for a premium”.
It means that insurer is
one who offers the insurance or protection or security to insured. Insured is
nothing but the person
Who invests
his money through premiums ( we can call it as instalments that we pay as per
the pre described interval of time ).
Insurer
offers benefits of money as per the ‘policy’ ( set of rules and features that
defines the contract of life insurance ).
Life policies are
legal contracts and the terms of the contracts describe the limitations of the
insured events.
Some specific
exclusions are also written into the contract to limit the liability of the
insurer e.g. claims relating to fraud, war, sucide.
That’s it . this was just
the introduction to life insurance, i know that this is not the brief description
of Life Insurance
But this
much content is enough to get the idea of ‘what Life Insurance is ?’. THANKS !
