Insurance policy always based on risk. Life insurance is a contract of between insured and insurer for the risk of life. Alike certain death or accidental death etc .Based on the contract after their terminal line the company will pay a sum of money to policy holder. By issuing the agreements the policy holder starts to pay the premiums. Life policy also has some strict terms and condition.
There has also limit the liability of the insurer such as fraud, committing suicide, war and civil commotion. Life insurance policy has two categories one is protection policies and another one is investment policies. Life insurance policy was established 18th century.
The founder of first life insurance company is William Talbot and Sir Thomas Allen. Amicable society for a perpetual assurance office first offered for life insurance policy. The calculation of life insurance policy is based on actuarial science. It’s also part of mathematics.
To issuing an agreement for life insurance the company always judge the policy holder age, gender and use of tobacco. Sometimes the company also takes information from their physician about the policy holder’s psychical condition.
After the policy holders death the company requires acceptable proof of death. Then company the company verify the legal causes of death and after getting surety of legal proceed of death the company payment a lump of sum. This money paid in regular installments or for the beneficiary life time.
Temporary and permanent is two basic classes of life insurance policy. Life insurance policy is very effective and beneficial for every people its secure customers future. Although life insurance policy is very beneficial, some people try to fraud with it and make crime.