Life insurance with existing medical conditions
Insurance on human life is called life insurance. Under the life insurance contract, the insurer pays a certain amount of premium
Exchange of acceptance in lump sum or in installments, on reaching a specified age or on death, the policyholder or his nominee or
A certain amount of money is paid to individuals. Any contract or subject has some characteristic by which
Life insurance with existing medical conditions
A related subject can be distinguished from other similar subjects. Life insurance contracts are no exception. life insurance there are several features. These features are discussed below:
1. Formal contract: Life insurance contract is like an insurance contract because of its own characteristics
A formal contract. So this agreement has to have various formalities. For example - offer and acceptance,
In writing, signed by the parties concerned, stamped where necessary, duly sealed, duly registered,
Transferability, valid reimbursement. And after completing these formalities, the life insurance contract has to be executed
This will be called a formal agreement.
2. Contract of Assurance: One of the features or elements of a life insurance contract is financial assurance. Note that life insurance is not a contract of indemnity but rather a contract of financial assistance. In other words, if there is any loss of human life and livelihood, the insurance company guarantees to provide financial assistance.
3. Conditional Contract: Life insurance contracts are conditional. Terms can be both written and unwritten or express or implied. Both parties shall comply with all terms of the terms.
4. One-sided contract: In life insurance contract, although both parties pay, it is mostly one-sided. In this case the policyholder continues to pay the premium unilaterally as per the term of the insurance contract. In case of death of the insured during this period or expiry of the insurance policy, the insurance company pays lump sum sum assured or lump sum as annuity as per the contract.
Life insurance with existing medical conditions
5. Subject matter of insurance: The subject matter of life insurance is human life. The insured may insure his own life or the life of a person in whom he has a financial insurable interest. Other insurances usually cover property.
6. Utmost good faith: The insurance contract is called a contract of utmost good faith. This is even more true in the case of life insurance. The insured and the insurer have to disclose all important information to each other regarding the content and other matters. If either party does not fulfill this duty properly then the contract is deemed to be void. Although the duty to disclose information lies on both parties, the duty is more on the insured. Because it is natural for him to know important information about his own life.
7. Insurable interest: Insurable interest is another very essential condition of the insurance contract insurance.
The insured's insurable interest in the subject matter must be subsisting. Otherwise the contract is considered void. Content insurable interest of the insured can be said only if loss or damage is caused to the insured has Every man has an insurable interest in his own life. So always live for your own life can be insured.
Life insurance with existing medical conditions
8. Investment & protection: Another major feature of life insurance policy is that it has both investment and protection options. If a person deposits money in a bank and withdraws it, he gets both the full amount and interest. It can be called investment. On the other hand, if a person is bound by a fire insurance contract for his house, then he can claim Life insurance with existing medical conditions compensation from the insurance company if his house burns down. And if the fire does not take place, then he can recover nothing. In this case it can be called defense. So it can be seen that there is no investment in fire insurance, there is defense. But protection and investment in life insurance stand side by side. In case of term life insurance, in case of death of the policyholder, his family gets financial help. And if he lives to term then himself
The insured can get the money. Therefore, life insurance is more popular than other insurances due to the benefits of both investment and protection.
Life insurance with existing medical conditions
9. Effective by the death: In other contracts, the contract can be canceled if one of the parties dies. But in the case of life insurance, it is observed that the contract is not voided on the death of the insured. Here is where life insurance differs from other contracts.
10. Nominee: The policyholder or holder of a life insurance policy at the time of making the policy or before maturity of the policy. At any time one or more persons can be appointed as 'nominee' to receive the policy money on his death. Because after the death of the insured, the insured can no longer receive the insured money. Therefore, there should be prior instructions as to who will accept the insured claim. If the nominee is not appointed, there is a lot of trouble in paying the claim.
11. Void of contract: Life insurance is essentially a contract entered into between the insurer and the insured. However, life insurance is not voidable in the same way as other contracts are voidable or voidable. In other contracts, death of one of the parties terminates the contract. But in case of life insurance the insurance contract comes into force on the death of the insured. This is a special feature of the insurance contract. However, failure to pay the premium for at least three years as per the terms and conditions during the term of the insurance, the insurance contract is considered void. Also if the premium and surrender value are equal, the policy is canceled on conversion of policy.
Life insurance with existing medical conditions
12. Surrender Value: The policyholder can surrender the insurance by paying regular premium for at least two years and in return the insurance company can refund the surrender value. However, in this case the insured does not refund the entire amount deposited. Because a large part of the premium received at the beginning goes to the company's expenses. It is generally seen that 60% to 80% of the deposit is paid as surrender value.
Finally, the above features or elements have given life insurance a special status, which is absent in other insurances.