What is Life Insurance Policy?
In life insurance, there are two parties insurer and the insured, the insurer is the company and the insured is the policyholder. The legal contract between these two is termed Life Insurance. Firstly, the policyholder, it becomes his responsibility from time to time would give ‘Legal Consideration Pay’ or ‘Premium’ to the insurer. This premium can be monthly or can be annual. But the one who is the insurer when he takes the premium it becomes his responsibility to return the money (which is pre-decided before the premium starts) in case of insurance period expires or in case of death of the insurer to his family. It is important for the policyholder that he must disclose his current health condition and high-risk activities in advance to initiate the contract.
What is Life Insurance? – Definition, Types, and Benefits
Earlier, Insurance looks very very different than what it looks like today. From the time of ancient Rome, there is some practice that, there was a ‘burial club’ that covers the cost of members’ funeral expenses. The earliest known life insurance policy was made in London where a company insured ‘William Gybbons’ by the contract of 400 pounds if he dies within one year. The sale of Life Insurance began in 1760 in the US where the poor and distressed widows were insured. Later it started in different countries.