Question

What are the essential elements of life insurance?

Answer 1

The essential elements of Life Insurance :

(a) The premium of life insurance may be paid annually, half-yearly, quarterly or monthly as agreed by the insurer and the insured.

(b) The insurer is liable to pay the insured amount either on the death of the insured or expiry of the specified period whichever is earlier.

(c) Life Insurance contract is not an idemnity contract but a simple contract in which payment of the insured amount is must, though the timing of payment may be uncertain. It has an element of investment and protection or both.