Life insurance is a contract of ___________.

Indemnity

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Guarantee

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Contribution

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None of these

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Solution

The correct option is B Guarantee
Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured.

Suggest Corrections

Similar questions

Which of the following is not applicable in life insurance contract?

(a) Conditional contract

(b) Unilateral contract

(d) None of the above

A contract of insurance is a contract of ___________________ which is based on utmost good faith.

The contract of fire insurance is a contract of _________________.

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