The following pages explain the features of term and permanent life insurance policies, and also compare the two so you can better understand what each type of coverage offers. There are two basic types of term life insurance policies. Key person life insurance is a life insurance policy that covers one or more of your key employees, for the primary goal of protecting the value and ongoing operations of your business. Personal accident insurance by paying an annual premium. Insurance is a mechanism that helps to reduce such adverse consequences through pooling, spreading and sharing of risk. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Module 3 practice of life insurance notes 25 insurance documents diploma in insurance services 2. It has been aptly said that life insurance offers the safest and surest means of. Insurance pdf types of insurance, scope of insurance. Most term policies have no other benefit provisions.
The policyholder pays a known premium to have the insurer guarantee payment for the unknown loss. Features of life insurance contract human life is an income generating asset. In summary, an insurance contract covers a policyholder for economic loss caused by a peril named in the policy. Insurance handbook insurance information institute. Define nature of insurance s per third school of thought. In this manner, the policyholder transfers the economic risk to the insurance company. Later in this guide you will find a worksheet to help you evaluate your needs and choose a policy type that meets those needs. This asset can be lost through unexpected death or made non functional through sickness or disability caused by an accident. This is the english version of the original publication, which was published originally in hungarian. A key person is an employee whose absence would have an adverse economic effect on your business. Term life term insurance is the simplest form of life insurance. Insurance pdf types of insurance, scope of insurance,classification vehicle insurance on buses, cars, trucks, motorcycles, etc. Features of life insurance contract mba knowledge base.
397 817 664 1083 501 113 937 961 1225 102 75 1307 1219 1379 1344 243 942 1196 761 304 8 1428 1088 504 1123 1237 456 357