Basic Principles of Life Insurance Policy in India

1
Principles of Life Insurance Policy
2
Brief Introduction

• Purchasing a life insurance policy is a must with
  the changing situations of life.
• Taking insurance is something that one should
  never take lightly as it ensures that their loved
  ones will be taken care of in case of unfortunate
  events.
• There are different life insurance plans
  available in India and depending on the
  individual requirements and affordability one can
  set up the premium amount.
• Before buying your policy, one should have a
  complete look at their personal finances.

3
What is Life Insurance?
4

• Life insurance is a source/medium/platform of
  providing a strong financial support for your
  family after your demise.
• It is a sound financial planning of your family
  for a better tomorrow.
• It helps you achieve your long term goals in
  life.
• In professional level, life insurance policy is a
  contract between oneself (insured) and the agent
  or insurance company (insurer).

5
Basic Requirements
6
1. Consideration

• Premium amount is the basic consideration for the
  insured.
• The first payment and then the continuing payment
  of premiums
• matters him the most.
• For an insurer, his considerations is the offer
  to pay out for the
• sum insured if the life insured dies during
  the respective policy
• period.

7
2. Terms of Agreement
Both the parties that is the insurer and the
insured must be in agreement for what they are
contracting for the specific period of policy.
3. Insurable Interest
The life insurance policy must have an insurable
interest specification.
8
4. Capacity Conditions on Contract
People under the age of 18 years i.e Minors are
restricted by the Family Law Reform Act 1969.
Because of certain restrictions, the contract
cannot be enforced against them. Hence, many
insurers will not issue a policy to someone under
the age of 18.
9
Thank You