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Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.
Subject to the "fortuity principle", the event must be uncertain. The uncertainty can be either as to when the event will happen (e.g. in a life insurance policy, the time of the insured's death is uncertain) or as to if it will happen at all (e.g. in a fire insurance policy, whether or not a fire will occur at all). [4]
When the owner of a life insurance policy passes away before the insured, things can get a bit tricky. If the owner and the insured are different people, the policy doesn’t just disappear.
Risks that can be insured by private companies typically share seven common characteristics. [4]Large number of similar exposure units.Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses.
Whole life and other permanent insurance policies, on the other hand, typically provide coverage through the end of the insured’s life as long as premiums are paid. Talking to an insurance agent ...
The life insurance medical exam is part of many insurers’ underwriting processes to evaluate the risk of insuring you. The medical exam can be done at your home or office and typically takes ...
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