A Look At History, Definition And Nature Of Life Insurance

A Look At History, Definition And Nature Of Life Insurance

Life Insurance means insurance on the life of an individual. Life Insurance is protection given to one person against the damage he may suffer through the death of another. Life insurance generally consists of the various kinds of insurances, such as whole-life insurance, term insurance, universal life insurance, endowment insurance, joint-life insurance, annuity insurance, marriage endowment insurance, temporary insurance and many more.

Origin and History of Life Insurance:

Life Insurance appeared first in England in the sixteenth century. The issuance of the first insurance policy was in England in 1653 AD to one Richard Martin, a citizen and council member of London on the life of William Gibbon, a citizen and Salter of London. In later years, the ordinary life insurance business extended to accident insurance and further by industrial and technological advancements, to industrial insurance. America incorporated the first life insurance corporation in the year 1759

Nature of Life Insurance:

Life insurance is in the nature of contingency insurance and it does not provide an indemnity. One of the effect of life insurance not being a contract of indemnity is that on the happening of the event insured against, the insurer has to pay the agreed amount irrespective of whether the assured suffers any loss or not.

                Life insurance comprises any contract in which one party agrees to pay a pre-set  amount upon happening of a particular event contingent upon the extent of human life, in consideration of the immediate payment  of a smaller sum of certain corresponding periodical payment by another party.

Essential Elements of Life Insurance:

To constitute life insurance, the following ingredients are to be satisfied -

·         It is a two-party contract.

·         It is a contract dealing with the life of a human being.

·         There is no necessity for the contract to provide for the payment, only on the death of the person.

·         A provision is made in the contract for payment of a lump sum, in return for periodic payments of premium,

·         The compensation of the insured amount is at the termination of an assured period or on the death of the person (whichever is former).

Object of Life Insurance:

Proposals are normally entertained, when the object of the assurance is-

·         Provision for old age

·         Family protection

·         Protection from accidents

·         Tax concessions

·         The employers fulfilling their liability

How do you select best insurance agent?

The most favorable insurance agent will be one, who will assist you with all your insurance requirements. Your insurance agent should guide you and plan for the risks that you need to be covered. There are Insurance agents in St. Charles, who provide with a variety of insurance policies to choose from, depending upon your needs. They offer insurance policies with final expenses, with simplified as well as guaranteed issue and a universal scheme of life insurance as well. They also offer Medicare supplement plans and retirement plans as well, with guaranteed lifetime income.

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