The following characteristics of features in life insurance may be deduced from the aforesaid definitions
: 1) Offer and acceptance: Like other contracts of insurance the life insurance contract is also the outcome of an offer made by the policy owner and its acceptance by the insurer. Generally the life insurance is a contract is made in waiting.
2) Agreed sum of money: The insurer agrees to pay a certain sum of money either on the death of policy owner or on the maturity of the policy whichever is earlier
3) Premium: The policy owner is liable to pay periodically the amount of the payment in the form of premium till the death of the policy owner or expiry of the period of policy whichever is earlier
4) Not a contract of indemnity: Life insurance contract is a note a contract of indemnity as the loss caused by the death cannot be measured in terms of money is a compensation for loss of the one’s life. 5) Insurable interest: In life insurance insurable interest must exist when the claim. The person who has been assigned a life policy need not have insurable interest in it as the insurable interest was already present at time of taking policy.
6) Lending helping hand: Life insurance provides helping hand to those who are left support less and helps financially in case of the death of the insured. It is also considered to be than the best alternative for making savings.
6) Lending helping hand: Life insurance provides helping hand to those who are left support less and helps financially in case of the death of the insured. It is also considered to be than the best alternative for making savings.
7) Covers other risks: Life insurance covered others risks which are connected with the human life in addition to the risk of death. For example, total and permanent disability or temporary disability and medical expense compulsory retirement or the economics death risks etc., have also been covered under the purview of Life insurance these days. 8) Relief sword of damocles: Life insurance relieves the insured from the sword of damocles i.e.., various risks and uncertainties which may occur before and after the death of the insured