Life insurance can be defined as a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual’s death or other events, such as terminal illness or critical illness. In return, the policy owner has to pay a predefined amount or ‘premium’ at regular intervals or as a one-time payment. Claims under the life insurance policies are settled by the respective insurer/insurance companies.
Life insurance policies cover the life of the assured and the amount payable in the event of the death of the assured are predetermined. Although the premium is paid at regular intervals, the contract subsists on the same terms and conditions till the validity of the policy. It may not be an exaggeration to say that LIC has become a house-hold name in India.
Written by: healthplus24.com