Life Insurance is fundamentally a co-operative plan which a number of industrial pool together their money and cover risk of life.
A life Insurance policy is, unlike of either a marine or fire insurance, not contract of indemnity. In life insurance the event insured against must happen one day, while in case of marine and fire , the contingency may or may not arise. In a Life Insurance contract, the insurer agreed to pay a stated sum either to the insurance at a stated age or to his insurance at death if earlier. Thus Premium paid in life insurance are returned to the insured at his beneficiary some day, similar in other types of insurance no consideration is per as long as the rest insured agent does happen.
A life Insurance policy is, unlike of either a marine or fire insurance, not contract of indemnity. In life insurance the event insured against must happen one day, while in case of marine and fire , the contingency may or may not arise. In a Life Insurance contract, the insurer agreed to pay a stated sum either to the insurance at a stated age or to his insurance at death if earlier. Thus Premium paid in life insurance are returned to the insured at his beneficiary some day, similar in other types of insurance no consideration is per as long as the rest insured agent does happen.
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