Life Insurance: A piece of history
Modern insurance contracts today, such as life insurance, come from the practice of traders in the 14th century was also recognized that different security measures strains have already been put in place for time immemorial and in some way, they are similar to insurance contracts in its embryonic form.
The phenomenal growth of the life insurance almost nothing there a hundred years to its present gigantic proportions are not the wonders presented today in business. In essence, life insurance has become one of the pressing needs of the human species because of the incessant demand for economic security, the growing need for social stability and the clamor for protection against the dangers of calamities paralyzing cruel and brutal economic crisis. Safety is the monopoly of a rich man. Gone are the days when only social elites enjoy their protection, because in this modern era, the insurance contracts are riddled with assured hope of many poor families. It is woven, as it were, in the corner of the national economy. It refers to the holy saint and the more links of human life. Parental love. The love of women. Love for children. And even love business.
Life insurance and financial protection
A life insurance policy pays an agreed amount generally known that the sum insured in certain circumstances. The sum insured in a life insurance policy is designed to meet their financial needs and their dependents in case of death or disability. Therefore, life insurance provides financial cover or protection against these risks.
Life Insurance: General Concepts
Insurance is a risk-sharing arrangement. Basically, the insurer or insurance company pools the premiums paid by all customers. Theoretically speaking, the group meets premium for each insured losses.
Life insurance is a contract whereby a fixed part of a person against loss by the death of another. Life insurance is a contract whereby the insurer (insurance company) for an intended amount, agrees to pay a certain amount of money if another dies in the time allowed by the policy. The payment of the insurance money revolves around the loss of life and in its broadest sense, life insurance includes accident insurance, because life is insured under any contract.
Therefore, the contract of life insurance policy is between the policyholder (the insured) and the life insurance company (insurer). In exchange for this protection or coverage, the insured pays a premium for a period of time depends on the type of policy purchased.